Mount Holly, North Carolina – An arbitrator has ruled that Daimler Trucks North America violated its agreement with the United Auto Workers Union (UAW) when it cut Freightliner truck production at its North Carolina facilities and shifted the work to Mexico.

The arbitrator also ruled that Daimler Trucks must compensate the members of UAW Local 5285, who were affected when the work was redirected.

According to the arbitrator, Daimler Trucks 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. Daimler Trucks has been ordered to increase production at the Mount Holly plant to 70 per cent of the M2 medium-duty trucks sold in the U.S. 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 which has yet to be determined.

Connect with Autos.ca