There were a lot of strikes in the news these past few months, so we kept our eyes on this story while it unfolded but refrained from writing about it until it resolved. Well, here we are, the United Auto Workers (UAW) has reached a bargaining agreement with Mack Trucks.
After a thirty-nine day strike, the Mack Trucks workers with UAW have agreed at a rate of 93% to the new terms. The collective bargaining agreement will last for five years, and the three biggest terms of the agreement are:
- An increase of pay by 36% over five years.
- An immediate 15% increase in pay for the workers.
- Health insurance premiums that the worker pays as a part of their compensation package stays the same despite health insurance prices increasing over time, meaning that Mack Trucks foots the bill for all increases for the foreseeable future.
With the strike coming to an end, Mack Trucks hopes that they can resume business as usual.
“The new agreement guarantees significant wage growth and delivers excellent benefits for our employees and their families,” Mack President Stephen Roy said via a statement regarding the bargaining agreement. “At the same time, it will safeguard our competitiveness and allow us to continue making the necessary investments in our people, plants and products.”
The approximately 3,900 employees are anticipated to go back to their normal shifts on November 20th, meaning that by the time you read this things will have returned to normal.
The only question that remains is to what extent this will have an effect on truck prices. As wages increase, so do the prices of goods, leading to other companies needing to increase their wages to give their workforce a living, and so forth. Such is the cycle of the economy.
This is not the first strike and resulting agreement that UAW has undergone this year. Other companies it has negotiated with include General Motors, but this is the first company UAW has negotiated with this year that primarily deals in the commercial vehicle sector, rather than typical passenger vehicles.
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