By David Shepardson
(Reuters) -Workers will receive a 19% pay hike over five years under an agreement with Volvo (OTC:VLVLY) Group-owned Mack Trucks and the United Auto Workers, according to a summary of the tentative agreement seen by Reuters.
Workers must still ratify the agreement covering 4,000 hourly workers that includes a $3,500 ratification bonus, improved retirement benefits, additional vacation for some employees and a reduction in the time needed to get to top pay. The agreement includes an immediate 10% pay hike upon ratification.
The benefits include another $1,000 annual payment to 401(k) plans to offset retirement health care costs for hires since 2009 and pension benefit increases along with maintaining the current health care plans with some modest increases in copays but no hike in weekly health care contributions.
"The terms of this tentative agreement would deliver significantly increased wages and continue first-class benefits for Mack employees and their families," Mack President Stephen Roy said in a statement earlier this week.
Mack, founded in 1900, is one of North America's largest manufacturers of medium-duty and heavy-duty trucks, engines and transmissions. Its trucks are sold in nearly 30 countries.
Volvo bought Mack in 2000.