Mack Trucks, UAW Members Ink New Labor Pact
June 1, 2009 (FinancialWire) — Volvo Group (OTC: VOLVY) said that members of the United Auto Workers have approved a new 40-month master agreement with the firm’s Mack Trucks unit. The agreement includes the establishment of an independent trust that will completely eliminate Mack’s commitments for providing healthcare to retired employees.
The company said that the move will have a negative impact of around $110 million on the Volvo Group’s operating income during the second quarter of 2009, and a negative impact of the same amount on net debt.
Volvo said the trust must be approved by the U.S. District Court for the Eastern District of Pennsylvania, a process that can take up to 12 months. Subsequently, the trust will permanently take over the entire obligation to provide healthcare benefits to current UAW members who have retired from Mack, for their surviving partners and for dependent family members, as well as for UAW members who retire in the future.
Stockholm-based Volvo Group is a manufacturer of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services.
FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.
Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
