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DUBLIN, Va. (AP) – Volvo Trucks North America announces that it will restart production at a plant in southwest Virginia on Monday despite an ongoing strike and the lack of a labor agreement between the company and a union representing nearly 3,000 workers.
The company said in a press release that it will implement the terms and conditions of a tentative deal approved by leaders of the United Auto Workers union on July 1. Workers at the Dublin semi-trailer assembly plant had rejected the tentative deal.
Returning employees “will immediately receive the salary increases and benefits described in the July 1 agreement, with the exception of the ratification bonuses which would be paid upon ratification of the contract,” the company said.
Brian Rothenberg, a spokesperson for the UAW, said in an email to The Associated Press on Sunday evening that the “strike was underway.”
“The UAW is evaluating the company’s position and evaluating our legal options,” he wrote. “A new vote is scheduled for Wednesday for bargaining unit members on the company’s latest, best and last offer.”
Volvo claims that the 1.6 million square foot (nearly 150,000 square meters) Dublin plant is the largest manufacturer of Volvo semi-trailers in the world. It is one of the largest private sector employers in the region, with approximately 3,300 employees, of which 2,900 are represented by the UAW.
The previous contract, concluded in 2016, was due to expire in mid-March. Negotiations began in February. Unionized workers went on strike April 17-30 and returned to work as negotiations resumed. UAW members rejected a contract proposal in May. The company announced another tentative deal later in the month, but it was rejected on June 6.
“The ongoing strike – which we continue to believe unnecessary – is hurting our customers and has already delayed our project to expand and modernize the facility,” said NRV Vice President and General Manager Franky Marchand, in a statement last week. “No one is taking advantage of the current situation, and we will be looking at all options related to the negotiation process. “
The Volvo Group is the only heavy-duty truck manufacturing group that assembles all of its trucks and engines for the North American market in the United States, according to Volvo. He said the plant was under a $ 400 million investment for technology upgrades, site expansion and preparation for future products, including the Volvo VNR Electric truck.
He added that the plant has created 1,100 jobs since the implementation of the current union agreement in 2016 and is on track to have a net increase of around 600 jobs in 2021.
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