UAW and Volvo Trucks Agree to New Five-Year Contract

April 06, 2016 by Carina Ockedahl, @Ockis9

Workers at the Volvo Trucks North America assembly plant in Virginia have agreed to a new five-year contract, the manufacturer said Tuesday.

The agreement covers about 2,000 members of the United Auto Workers Local #2069 at the New River Valley, Va., plant. The labor union served as a bargaining committee between Volvo and its employees.

Volvo’s Virginia plant is used to assemble heavy duty commercial trucks. It’s the company’s largest truck manufacturing facility in the world.

“This agreement gives us the stability we need to keep building on the momentum we established during our record 2015,” said Göran Nyberg, president of Volvo Trucks North America.

Volvo laid off about 600 employees at the factory in February because the market for big trucks is slowing. Volvo Trucks North America delivered about 39,000 vehicles last year.

The new contract expires on March 16, 2021.The agreement will include wage increases, improved health care benefits, pension increases, and the re-integration of an annual holiday workers can use to go hunting, according to the UAW.

“Our positive working relationship with the UAW was in evidence throughout negotiations,” said Franky Marchand, the plant’s vice president. “[This] helped us reach an agreement that ensures the plant’s competitiveness, while continuing to offer our employees a great quality of life.”

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