Volvo Reaches Labor Agreement, Says Plant Expansion on Track

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Volvo Trucks North America, Inc. 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 percent to 50,000 trucks.

The expansion is expected to create approximately 1,300 new full-time jobs

uring the next three years, the company said.

Production and maintenance workers of UAW Local 2069 voted yesterday 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 Feb. 1, 1999.

The six-year contracts are the longest of their kind in the North American heavy-truck manufacturing business. The contract with approximately 2,000 production and maintenance workers was completed 12 months before the previous contract was due to expire. The contract with the salaried workers is a new agreement.

he labor agreements will allow the company greater flexibility in its manufacturing operations to meet current and anticipated demand for its trucks and tractors. All workers will receive annual increases in base wages and cost-of-living increases totaling 18 percent over the life of the agreement.

Production and maintenance workers will receive improved pension and other benefits as well.