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Mack reaches tentative deal with unionized US workers

LEHIGH VALLEY, Penn. -- It looks like there'll be labour peace at Mack Trucks' plants in the US.

LEHIGH VALLEY, Penn. — It looks like there’ll be labour peace at Mack Trucks’ plants in the US.


Mack reached a tentative deal with the United Auto Workers (UAW) last week, which will cover about 1,700 workers at seven facilities in three states, the company announced Friday. The agreement includes a new contract as well as creation of an independent retiree health care trust.


The independent trust, dubbed a Voluntary Employee Beneficiary Association (VEBA) will be managed by the UAW, according to Mack. It will be funded by Mack’s parent company, AB Volvo, which will inject US$525 million into the fund over five years.


Mack said the fund will provide continued health care benefits for the roughly 9,000 current Mack/UAW retirees, surviving spouses and dependents as well as future UAW retirees.


The new deal is expected to be ratified over the coming weeks.

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Truck News

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