Strike at New River Valley plant
On February 1, The United Auto Workers (UAW) union called a strike for the slightly more than 2,600 members at the New River Valley assembly plant in Dublin, Virginia, USA. The strike stopped practically all production in the plant for almost two months. In total, the strike had a negative impact on operating income during the first quarter amounting to approximately SEK 250 M.
On March 15, it was announced that employees represented by the UAW had ratified a new three-year agreement that ended the strike. Employees returned to work on March 24, when the plant began ramping up to an average production rate of 146 vehicles a day to make up for the production that was lost during the strike.
However, given the weak demand in the North American truck market, in April a decision was taken to adjust production to a level more consistent with market demand. Originally, the production adjustment was planned to take place in February, before the strike broke out. The adjustment will entail moving from two shifts to one in May and consequently about 1,100 employees will be laid-off.