The United Auto Workers (UAW) has reached a labor agreement with Mack Trucks, a subsidiary of Volvo Group, just before the midnight deadline on Sunday, avoiding a potential strike. The tentative deal covers nearly 4,000 workers in Pennsylvania, Maryland, and Florida. While the details of the agreement have not been released, it demonstrates that an agreement can be reached quickly if necessary. The deal is seen as both good and bad news for Ford, General Motors (GM), and Stellantis, as the strikes at the three Detroit auto makers enter their third full week. Another UAW strike would have diverted funds away from the union’s strike fund, so the last-minute deal ensures more funds are available for the ongoing strikes at Ford, GM, and Stellantis.
The UAW strike fund, which had approximately $825 million when the walkouts began on September 15th, is planned to pay striking workers about $500 a week. The targeted approach taken by the union so far means that the strike fund could last longer than anticipated. On Friday, the UAW expanded its strike and included one assembly plant at both GM and Ford, showing dissatisfaction with the progress of negotiations with Ford. Despite the labor disputes, Ford, GM, and Stellantis all saw marginal gains ahead of the open of trading on Monday.
