Dina claims it is unable to grant a 40% wage increase demanded by its workers because of the company’s critical financial condition, precipitated by Western Star Truck’s decision to cancel its contract to purchase 9,000 trucks over a 3-year period.
DaimlerChrysler’s heavy truck subsidiary, Portland-based Freightliner LLC, purchased Western Star last year for $453 million and cancelled the Dina contract to build a series of Class 6 and 7 medium-duty trucks.
Dina executives also said current economic trends prevent the company’s ability to offer wage increases to its workers. The company cited: high interest rates and inflation; economic conditions in Mexico and Argentina, among Dina’s primary markets, which have experienced significant volatility in recent years, including devaluation of the peso; and the outcome of its lawsuit against Western Star for breach of contract, as there is no assurance that the eventual outcome will be beneficial to the company, said Dina.
