Mack Trucks will lay off 250 to 350 workers at its Lehigh Valley Operations plant in Lower Macungie Township because of tariffs and other economic factors.
A Mack spokesperson said heavy-duty truck orders “continue to be negatively affected by market uncertainty about freight rates and demand, possible regulatory changes, and the impact of tariffs.”
The layoffs will be conducted over the next 90 days.
“We regret having to take this action, but we need to align production with reduced demand for our vehicles,” the spokesperson said.
A letter posted on social media by officers from United Auto Workers Local 677 confirmed that Mack Trucks is laying off part of its Lehigh Valley Operations workforce because of the “market being in decline.”
The letter, signed by Shop Chair Tim Hertzog and Alternate Shop Chair Dan Hand on Thursday, said they met with company officials in the early afternoon.
“Due to the market being in decline, there will be a rate and line reduction,” they wrote. “I have heard all the same rumors you guys have heard. This is the first time I have had an official word from the company that there will be a layoff. I do not know the scope of it yet; we have things to work through.”
The plant in Lower Macungie Township employs about 2,300 union workers.
As of Friday morning, a Worker Adjustment and Retraining Notification had yet to be posted on the state Department of Labor & Industry website. Federal law requires employers to provide notice 60 days in advance of a closing or mass layoff.
The current five-year labor agreement, which Mack and the UAW agreed to after a 39-day strike in 2023, says the company will “not close LVO Operations for the term of the agreement.” At a minimum, “LVO will continue to operate two shifts on one production line and one shift on the other production line for the life of the agreement subject to production limitations and market demand.”
When President Donald Trump was considering tariffs in March, the UAW said it didn’t want to be caught in the middle over policy disputes between the U.S. and other countries.
“The UAW supports aggressive tariff action to protect American manufacturing jobs as a good first step to undoing decades of anti-worker trade policy,” UAW President Shawn Fain said on social media. “We do not support using factory workers as pawns in a fight over immigration or drug policy. We are willing to support the Trump Administration’s use of tariffs to stop plant closures and curb the power of corporations that pit U.S. workers against workers in other countries. But so far, Trump’s anti-worker policy at home, including dissolving collective bargaining agreements and gutting the National Labor Relations Board, leaves American workers facing worsening wages and working conditions even while the administration takes aggressive tariff action.”
State Rep. Josh Siegel, D-Lehigh, said workers “are being sacrificed at the altar of political theater.”
“The tariffs — erratic, broad and poorly targeted — are crushing core U.S. industries like trucking and manufacturing,” Siegel said. “Supply chains are snarled, costs are soaring, and confidence among employers is collapsing. Communities like the Lehigh Valley, built on generations of hard work and industrial pride, are now being asked to carry the burden of this administration’s incompetence. These are good-paying union jobs that our community cannot afford to lose.”
State Sen. Nick Miller, D-Lehigh/Northampton, said layoffs “will have a serious impact on families and the regional economy.”
“I remain a strong advocate for protecting and growing American manufacturing jobs, but the newly proposed tariffs are too much and too fast for domestic businesses to absorb,” Miller said. “These measures threaten to destabilize industries and family livelihoods that Lehigh Valley residents depend on. “
Miller said tariffs will have a negative effect in the Lehigh Valley. Manufacturing was the leading driver of the Lehigh Valley’s $55 billion gross domestic product at $9 billion, and makes up 16% of the region’s GDP.
“We need smart, balanced policies that defend American jobs without destabilizing local economies,” Miller said. “The people of the Lehigh Valley deserve job stability and the opportunity to thrive.”
U.S. Rep. Ryan Mackenzie noted that Mack received grants from the federal government under President Joe Biden.
“I’m disappointed to hear of Mack Trucks’ decision to lay off workers after several quarters of weakening growth and despite being awarded hundreds of millions of taxpayer dollars under the previous administration,” said Mackenzie, R-7th District. “I’m particularly disappointed that they have opted to do so on the heels of last year’s decision to build new plants in Mexico instead of in our region. Lehigh Valley workers are among the best in the world, and I will continue to support policies that put American workers first and attract good paying jobs to our region.”