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MOUNT HOLLY, N.C. -- An arbitrator has ruled that Daimler Trucks North America violated its agreement with UAW workers when it cut production at its North Carolina facilities and shifted the work to Mexico.
The arbitrator also ruled the company must compensate the members of UAW Local 5285 who were affected when it sent the work elsewhere.
According to arbitrator Robert B. Moberly, Daimler Trucks North America violated its agreement with workers at Freightliner Truck Manufacturing Plant in Mount Holly by cutting more than 900 workers there, while increasing truck production at a plant in Mexico.
"We are pleased that the ruling is in favor of the workers," said UAW President Ron Gettelfinger. "Our members stood up against having their jobs outsourced. It's a victory that would not have been achieved without a union contract."
Moberly ordered Daimler Trucks to increase production at the Mount Holly plant to 70 percent of the M2 medium-duty trucks sold in the United States and Canada, as calculated on a monthly basis. The company must also compensate union workers who were laid off in October 2008 and March 2009 for their losses. The extent of those losses has yet to be determined.
"The arbitrator makes it clear that the company needs to keep its end of the deal. That is good for the workers and North Carolina's economy," said UAW Vice President General Holiefield, director of the union's Heavy Trucks Department.
"We look forward to working with the company to identify remedies that will get our members back to work as quickly as possible so they can provide for their families and support their community," said Gary Casteel, director of UAW Region 8, which includes North Carolina.