VOLVO TRUCKS NORTH AMERICA

February 12, 2008

Mr. General Holiefield
Vice President and Director
UAW Heavy Truck Department
8000 E Jefferson Avenue
Detroit, Michigan 48214

Dear Mr. Holiefield:

I am in receipt of your letter dated January 31, 2008 concerning UAW allegations regarding the conduct of the New River Valley negotiations, the supply of information to the UAW concerning the NRV plant’s health and safety record and safety programs, and Volvo’s proposals for changes to the collective bargaining agreement.  It is important to point out that your letter contains numerous factual inaccuracies.

In order to clear the air and hopefully redirect our efforts to resolve the critical operational issues that were being discussed in negotiations and to successfully conclude these negotiations, let me respond briefly but specifically to each of your assertions:

• “…The Company continues to make unreasonable proposals on wages, benefits and other mandatory subjects of bargaining.”

The truth of the matter s that the Company was never given the chance to make a proposal respecting wage increases because of the Union’s decision to break off negotiations.  Progress was being made in the negotiations on benefits and it would be our intent to continue these discussions where they left off when negotiations resume.  Other mandatory subjects of bargaining (i.e. manpower movement, absentee provisions, etc.) were also being discussed when the negotiations were terminated by the Union.  During the negotiations both parties acknowledged that the NRV plant suffered from serious problems in these identified areas. Similarly, both parties acknowledged that these problems required resolution in order for the plant to become competitive. The purpose of the Company’s proposals in these areas was to offer potential solutions for these acknowledged problems.

• “…we asked you to provide certain health and safety related information.  Unfortunately, the Company has not yet provided us with what we need to move forward – despite the fact that we initially requested almost all of this data more than three months ago.”

The Union requested substantial information, including health and safety related information.  The Company dedicated substantial time and effort to compile that information and a great deal of information was provided to the Union.  The assembled health and safety information alone resulted in a binder several inches thick. This binder of information was delivered to the Union at the beginning of negotiations. The Union made additional health and safety information requests during the last week of negotiations.  The Company negotiators were prepared to answer this request, but were unable to do so because the UAW International’s health and safety representative left the negotiations early and did not return the Company negotiator’s phone calls to schedule another meeting (we were told we could have no meetings on this subject without the UAW International representative present). Nevertheless, this information and more will be forthcoming shortly. A problem did arise relating to employee first names being cut off on a produced spreadsheet report. This problem was promptly remedied to the Company in that new documents were provided to the UAW International health and safety representative during the negotiations.

• “Volvo’s refusal to provide information that is critical to resolving the many outstanding health and safety issues is an unfair labor practice under federal law.”

The most disturbing assertion in your letter is that the New River Valley plant suffers from many outstanding health and safety issues.  Between January 8, 2008 and February 1, 2008, the UAW local negotiating committee was allowed to meet with our Company negotiating committee on health and safety issues only six times.  Although the Company was prepared to meet as often as needed, no more meetings could be held because the UAW International’s Health and Safety Representative (Andy Comai) was only available on these dates.  In fact, Mr. Comai left before the negotiations concluded and did not return the Company negotiator’s telephone calls the last day of negotiations which were made in an attempt to set up additional meetings.  It is strange that if Mr. Comai truly believed that serious health and safety issues existed at the NRV plant that he made himself available for only six (6) out of the twenty (20) negotiation sessions.  Even so, those six (6) days were not optimally utilized.  If Mr. Comai could not attend the sessions you would think that he would have allowed the parties to meet without him.  This he did not allow. Only two (2) “safety issues” of substance were identified by Mr. Comai during the six (6) days: Ergonomics and Cadmium.

     Ergonomics.  The only ergonomics “issue” discussed in the negotiating sessions related to Mr.  Comai’s demand for additional company-paid UAW committee members to survey the plant on a weekly basis to detect possible ergonomic problem areas.  UAW local health and safety representatives already perform this function.  The parties reached an understanding on this issue and were preparing a tentative agreement before the Union walked away from the table.

      Cadmium.  Mr. Comai made reference to the Company’s past use of some cadmium-plated fasteners in the plant.  As you know, cadmium is a common rust inhibitor and coating that is lawfully used throughout the United States. However, OSHA has established cadmium exposure limits for the work place. Volvo decided to reengineer its product and discontinue the use of the cadmium coated fasteners although not required by law to do so. The last of these fasteners was removed from the plant in early January 2008.

• “….Volvo continues to demand the dismantling of many of the basic health and safety protections found in our current agreement.”

As you are aware, our current contract language expresses a mutual commitment by both parties to “cooperate in seeking solutions to help reduce accident frequency and severity rates and shall jointly participate in Health and Safety education.” The Company has and remains committed to cooperating with the Union.

The only health and safety proposals that the Company has on the table are intended to delete language in the agreement which is not needed either because it is repeated elsewhere in the agreement or it is language that is merely a restatement of what federal or state statutes already require.  These proposals are not intended to bring about substantive changes to the contract but rather are intended to reduce the amount of unnecessary language contained in the agreement so that it is easier to read and understand for all concerned. It is misleading to say that the Company’s proposals are an effort to dismantle basic health and safety protections.

The UAW’s strategy of engaging in unfounded and misleading attacks on Volvo’s safety record will not serve our common goal of negotiating a fair contract that will provide your members and our workers with good, safe jobs through the long-term success of the Volvo product line. Heavy truck manufacturing and assembly will always present safety challenges to the Volvo management team. We should work together to identify, address, and resolve any new health or safety issues that may arise in the plant. However, neither the workers nor the New River Valley community as a whole are well served when the UAW makes unfounded and inflammatory claims that their safety is at risk.

In conclusion, the workers at the New River Valley plant repeatedly tell us that they are proud of the Volvo trucks they build. Volvo management is also proud of those products but they must be able to create positive returns for Volvo stockholders (including the substantial stake held by employee pension funds) from the manufacture of those trucks. The Dublin and surrounding communities have undoubtedly enjoyed wonderful economic and social benefits from Volvo’s presence. However, as Per Carlsson and Jan Stromberg described during the last week of negotiations, we must use these negotiations to cure the production problems that have plagued the New River Valley plant and convince the Volvo Board of Directors and stockholders that the plant can be relied upon to generate long-term profits. If we fail, it will only be a matter of time before our owners finally give up on the New River Valley plant.

The Company looks forward to having a meaningful dialogue with the UAW to discuss all issues of mutual interest so that we can arrive at a fair agreement and return the employees to work.

Sincerely,

D. William Waters, Jr.
Director, Workforce Performance
Lead Negotiator

     Cc:    Tim Bressler, UAW Chief Spokesperson
                Roger D. Susanin, Esq., Company Chief Spokesperson

Comments (5)

Subscribe to this comment's feed

...
written by Ronald D. Walton, February 15, 2008

Wow...........30 pieces of silver? Really? Do you think they would pay me this much? Maybe it would be cheaper if the Union leadership simply answered the phones and answered the questions we have..........

report abuse

vote down

vote up

Votes: +0

Hey Ron, How much are they paying you?
written by Randy Webb, February 15, 2008

So, is it lucrative for a website to be so one sided???????????? Take your 30 peices of silver, Judas. And live with it, because it's obviously all you have.

report abuse

vote down

vote up

Votes: -1

As to shareholder valve
written by dja, February 14, 2008

As a present Volvo shareholder, the company and me have realized substancial value in stock dividends and stock splits.Is Volvo now becoming greedy at the workers expense?

report abuse

vote down

vote up

Votes: +1

...
written by Ronald D. Walton, February 14, 2008

We would be MORE than happy to get the UAW side to any of this. Perhaps if they returned phone calls we could do so.

report abuse

vote down

vote up

Votes: +0

...
written by MichelleS, February 14, 2008

Hello Ron,

Did you read the UAW's counter voice today in the Southwest Times. Always two sides to every story.

report abuse

vote down

vote up

Votes: +2

Name

Email

Title

Comment

smaller | bigger

Subscribe via email (Registered users only)

I have read and agree to the Terms of Usage.

Add Comment