The largest union representing auto industry workers in the United States, the United Auto Workers (UAW), expressed its disappointment with Volvo’s decision to open a new truck plant in Mexico. In a letter released on Thursday, the UAW stated that they are investigating the contractual obligations for truck manufacturing rates at the Lehigh Valley Operations plant and potential legal implications of Volvo’s move.
Volvo announced the new plant in Mexico last Thursday, alongside an $80 million investment for future production at the LVO factory, on top of the $73 million already spent in the last five years. UAW Local 677 President Tim Hertzog called Volvo’s decision a “slap in the face” to all workers, as the union was only informed of the plans 15 minutes before the announcement.
Volvo has not yet commented on the situation, leaving many auto industry workers in the US concerned about the implications of the company’s decision to expand production outside of the country.