Volvo Trucks-UAW contract expires, Virginia production halted

The Trucker Staff

2/1/2008

DUBLIN, Va. — Volvo Trucks North America said Friday that the company was not able to reach an agreement with the United Auto Workers on terms of a new contract. UAW workers, affiliated local #2069, walked off the job at the New River Valley truck assembly plant just after midnight.

A new pact would cover approximately 2,600 UAW members of the 2,900 employees at the plant, which currently produces about 100 Volvo and Mack trucks per day.

“We regret that the UAW has decided to take this action,” said Per Carlsson, president and CEO of Volvo Trucks North America, in a statement. “Volvo Trucks is committed to the collective bargaining process, and we will continue to bargain in good faith until an agreement can be achieved.”

The strike “will stop practically all production until further notice,” a Volvo statement said.

Negotiations for the new contract began on January 8, the company reported. The existing contract expired at 11:59 p.m., Thursday. Details of the discussions were not released.

The company notified employees in November 2007 that up to 650 workers faced permanent layoffs at the end of January because of slack demand in the North American truck market.

The 1.6 million-square-foot New River Plant is the largest Volvo truck manufacturing center in the world. Volvo Trucks North America assembles its Volvo VT, VN and VHD trucks at the facility in southwest Virginia. Volvo engines for North America are assembled in Hagerstown, Md.

Volvo Trucks North America is part of the Volvo Group of companies, a publicly held company headquartered in Gothenburg, Sweden.