11:24 AM PDT on Wednesday, July 28, 2004

By ANTONIA GIEDWOYN, kgw.com Staff

Portland-based Freightliner LLC is boosting production and will add about 700 full-time employees to its Portland truck manufacturing plant, company officials said Wednesday.

A company official shows one of Freightliner's truck models. (KGW file photo)

"Freightliner LLC continues to invest in the Portland operation by adding a significant number of excellent jobs at the Truck Manufacturing Plant on Swan Island," said Rainer E. Schmueckle, President and CEO of Freightliner LLC.

During the announcement, the Portland-based company cited significantly increased demand for its heavy duty commerical trucks produced at the plant.

"Favorable economic conditions and customers' need to replace older equipment or expand their operations are driving a robust recovery of the North American Class 8 market. We expect the market to continue its stronger performance through the end of 2004 and beyond," Schmueckle said.

Freightliner LLC's Portland facility will begin a new, second production shift which will start in August. Freightliner LLC will immediately begin hiring employees to staff the new positions.

Employees will be added over the next few months as the plant ramps up to full production capacity on two shifts. The Portland truck manufacturing plant currently employs 1,100 people on one full production shift.

Freightliner also employs more than 2,000 people at the company's corporate headquarters in Portland.

Contract dispute

Freightliner workers recently ratified a new contract after some contentious negotiations. Stalled contract talks earlier this summer brought Freightliner's union workers to the brink of a strike. Union members had voted to go on strike after rejecting the contract offer from Portland's largest manufacturer in June.

Union workers said they rejected the contract offer in June because it failed to make up for the wages and medical coverage they voluntarily gave up in 2001.

That's when Freightliner lost a reported $1.2 billion and underwent massive restructuring, closing plants and laying off workers. The company shuttered its parts plant in Portland and, between 1999 and 2003, reduced its work force by 2,000.

The Portland truck manufacturing plant produces a variety of heavy duty trucks for long haul and vocational applications. Western Star models produced at the plant include the 4900 EX, 4900 FA, 4900 SA and the 6900 XD. Freightliner truck models built at the facility include the Coronado, Century Class S/T and the Columbia. The Portland plant also builds heavy-duty vehicles for the U.S. military.

The plant is part of the Freightliner Group's NAFTA commercial vehicle manufacturing network that includes manufacturing facilities in North Carolina, South Carolina and Ontario.