Volvo To Pay $525M For Mack Trucks Health Care
STOCKHOLM (AP) ¿ Allentown, Pennsylvania-based truck maker Mack Trucks Inc. has signed an agreement with the United Auto Workers union to create an independent trust responsible for the health care of retirees, Swedish parent company AB Volvo said Monday.
Volvo said it will fund the trust with $525 million (euro389 million) in cash, which will be paid in equal installments over a five-year period.
The agreement is part of a new collective bargaining agreement and requires approval by United Auto Workers members, as well as an approval order from a U.S. district court.
If approved, the first payment of $110 million (euro82 million) will be made in the second quarter 2009.The creation of the trust will allow continued health care benefits for current and future Mack Trucks retirees while completely eliminating Mack's health care liabilities, Volvo said. The company didn't want to disclose further details of the collective bargaining agreement until it has been ratified by local bargaining units.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV