New agreement between Mack Trucks and UAW
On May 31, 2009 members of the U.S. trade union, the United Auto Workers, approved a new 40-month Master Agreement with the Volvo Group’s subsidiary Mack Trucks. The agreement includes the establishment of an independent trust that will completely eliminate Mack’s commitments for providing healthcare to retired employees, their surviving partners and for dependent family members, as well as for UAW members who retire in the future. This had a negative impact of SEK 870 M on the Volvo Group’s operating income during the second quarter of 2009 and a negative impact of the same amount on net debt. 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.