Volvo, UAW Reach Labor Agreement
January 29, 1999
Volvo Trucks North America Friday announced the ratification of another six-year contract with the United Auto Workers Union for production and maintenance workers at its New River Valley Truck Assembly Plant in Dublin, VA.
It also said plans are on track to invest $148 million to expand facilities there to increase annual production by 60% to 50,000 trucks. The expansion is expected to create approximately 1,300 new full-time jobs during the next three years. Published reports indicated that if Volvo and the UAW did not reach an agreement, those plans would be derailed.
Production and maintenance workers of UAW Local 2069 voted in favor of the agreement by a margin of 1,253 to 562. Salaried workers approved a separate agreement on Jan. 17. Both agreements take effect today.
The labor agreements will allow the company greater flexibility in its manufacturing operations. Provisions also call for the option to implement a new scheduling concept called Quattro. The new work schedule, in combination with added overtime flexibility, would allow production of 1,500 trucks more trucks a year using a one-shift assembly operation.
The agreement with the UAW was one prerequisite for the expansion of Volvo Trucks' facilities in Dublin. The other prerequisite is economic assistance from state and local governments.
Construction of Volvo Trucks' expanded facilities is scheduled to begin in 1999. Each of four existing buildings will be expanded or upfitted with new systems and equipment. Plans also call for new facilities as well as improvements to local roadways.