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Manufacturing & engineering

UAW members strike Mack Trucks after overwhelmingly rejecting contract proposal

United Auto Workers (UAW) members went on strike Monday against Mack Trucks after voting to reject a proposed five-year contract deal, the union announced.

Roughly 73% of the 4,000 workers in Florida, Maryland and Pennsylvania voted against the deal.

The contract proposal from the Volvo-owned company notably included a 19% pay hike and a $3,500 ratification bonus, along with better retirement benefits, additional vacation time for some employees and a reduction in the amount of time it takes to reach the highest pay level.

However, in a strike notice sent to membership, the UAW said "many topics" remain at issue, such as the size of wage increases, cost-of-living allowances, job security and wage progression.

"I'm inspired to see UAW members at Mack holding out for a better deal, and ready to stand up and walk off the job to win it," UAW president Shawn Fain said Sunday evening.

Mack president Stephen Roy said the company was "surprised and disappointed" by the decision to strike.

"We clearly demonstrated our commitment to good faith bargaining by arriving at a tentative agreement that was endorsed by both the International UAW and the UAW Mack Truck Council," Roy said.

The UAW said it plans to reach out to Mack in order to set dates to resume bargaining talks.

Meanwhile, the union has already been on strike against the Detroit automakers Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM) and Stellantis NV (NYSE:STLA, EPA:STLA) since September 15. The targeted strike currently includes about 25,000 of the 146,000 UAW members at plants across the three companies.

On Friday, the UAW opted not to expand its targeted strike to additional facilities as it had each of the prior two weeks following what it called a significant breakthrough in talks with GM.

GM agreed that the workers at its future EV battery plants will be covered by the same national labor agreement governing other UAW members at GM. The company has argued in the past that those workers are not GM employees because the plants are operated by joint ventures the company has with Asian battery producers.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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