WSJ: Volvo, UAW Reach Healthcare Deal For Mack Unit Employees

http://online.wsj.com/article/BT-CO-20090531-702617.html

STOCKHOLM (Dow Jones)--AB Volvo (VOLV-B.SK) said Sunday the United Auto Workers Union has approved a deal with Volvo's North American subsidiary Mack Trucks Inc. over health care liabilities for retirees, which will hit the Swedish truck maker's operating income by some $110 million in the second quarter.

"Members of the U.S. trade union, the United Auto Workers, have approved the new 40-month Master Agreement with the Volvo Group's subsidiary Mack Trucks," Volvo said in a statement.

The deal will increase Volvo's net debt by $110 million.

Volvo said agreement includes the establishment of an independent trust which must be approved by the U.S. District Court for the Eastern District of Pennsylvania, a process that can take up to 12 months.

Volvo said the trust will permanently take over the entire obligation to provide healthcare benefits to current UAW members who have retired from Mack, for their surviving partners and for dependent family members, as well as for UAW members who retire in the future.

Volvo has been hard-hit by the economic downturn and stringent emissions regulations. April deliveries of Mack trucks fell by more than half to 724 compared with 1,756 a year earlier.

Mack currently supports around 9,000 retirees and dependents.

Company Web site: www.volvogroup.com

-By Ian Edmondson, Dow Jones Newswires; +46-8-5451-3094

at least they seem to want to take care of their workers...