Contract Dispute Threatens Expansion
Just last week, Gov. Jim Gilmore announced in his State of the Commonwealth speech that the plant would undergo a $148 million expansion and would add 1,277 jobs. Mr. Gilmore asked the General Assembly to approve a $50 million incentive package for the project.
"The company will pursue other options to increase capacity," said Phil Romba, a spokesman for company based in Greensboro, N.C.
olvo Trucks made the announcement Monday, a day after hourly workers at the Dublin plant rejected a contract calling for a 30% pay cut and a different health care plan for new workers.
John Sayers, president of UAW Local 2069, said Volvo's deadline was not unexpected.
"We knew it was a possibility," he said. "Now that it's come out we'll have to deal with it."
r. Romba said negotiations with the union were continuing.
However, Mr. Sayers said no talks have been scheduled. He said UAW International officials and union members must be consulted before that happens.
"I'm sure we could reach a satisfactory agreement," Mr. Sayers said. "But what's satisfactory will be determined by the membership."
State Secretary of Commerce and Trade Barry E. DuVal said he was optimistic the labor dispute will be worked out.
"Clearly, these jobs are important to Virginia and southwest Virginia," he said. "We hope this will be resolved in the next two weeks."
Workers at the Volvo plant, which has 2,467 employees, are paid from $16.49 to $18.14 an hour. The Dublin plant opened as the White Motor Corp. in 1975 with 150 employees. Volvo bought truck business in 1981.
