The largest union of auto industry workers in the United States, the United Auto Workers (UAW), declared that it is extremely disappointed
with the decision of the heavy vehicle manufacturer Volvo to establish a new truck plant in Mexico, with which the company seeks to complement its production in the United States.
In a letter published late Thursday, the U.S. union said it is investigating contractual obligations for truck manufacturing rates at the Lehigh Valley Operations (LVO) plant and the possible legal ramifications of Volvo’s decision in Mexico.
Volvo announced the new plant in Mexican territory last Thursday and added that it will invest an additional $80 million for future production at the LVO factory, after having spent $73 million in the last five years.
This is a slap in the face for all of us.
UAW Local 677 President Tim Hertzog said, noting that the company informed the union of the plans 15 minutes before the announcement.
Volvo officials were not immediately available for comment.