Volvo to restart production amid contract impasse with UAW

Updated Jul 14, 2021
Volvo truck driver

After reaching an impasse Sunday in discussions with United Auto Workers (UAW) negotiators regarding a new contract for its New River Valley (NRV) plant in Dublin, Va., Volvo Trucks North America will on Monday implement the terms and conditions of the tentative agreement endorsed by UAW leaders on July 1, 2021. 

Volvo says any employees who return to work on July 12 or thereafter will immediately receive the wage increases and benefits outlined in the July 1 agreement, except for the ratification bonuses that would be paid on contract ratification. UAW members had formally rejected the most recent agreement on Friday.

“We need to safeguard our future, and start building trucks for the many customers and dealers whose businesses and livelihoods depend on our products,” says Franky Marchand, vice president and general manager at the NRV plant. “Our last offer delivered significant wage gains and first-class benefits for our employees, and 40 percent of UAW voters supported it.  We look forward to welcoming employees back to the plant, and to getting back to building the industry’s best heavy-duty trucks.” 

Volvo Group states it 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. The NRV plant employs more than 3,300 people, about 2,900 of whom are UAW members. 

"The ongoing strike, which we continue to believe is unnecessary, is hurting our customers, and has already set back our project to expand and upgrade the facility," Marchand said on Friday. "No one is gaining from the current situation, and we will consider all options related to the bargaining process.”

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