PHOENIX - Cavco Industries , Inc. (NASDAQ:CVCO), a prominent producer of manufactured and modular homes in the United States, is facing a strike at its Emlenton, PA manufacturing plant following the expiration of the collective bargaining agreement with The International Association of Machinists. The union, which represents the plant's employees, has elected to strike after negotiations reached an impasse.
The expired agreement has prompted the unionized workers to cease work, impacting the operations of one of Cavco's key manufacturing facilities. The company has expressed a desire to return to the bargaining table and is expected to resume negotiations early next week, with the aim of reaching a new contract that acknowledges Cavco's commitment to its workforce.
Cavco, headquartered in Phoenix, Arizona, operates under various brand names including Cavco, Fleetwood, and Palm Harbor. The company's extensive product range is distributed through independent and company-owned retailers. In addition to housing products, Cavco is also a significant producer of park model RVs, vacation cabins, and factory-built commercial structures.
Further to its manufacturing operations, Cavco's finance subsidiary, CountryPlace Mortgage, is an approved seller/servicer for Fannie Mae and Freddie Mac, as well as a Ginnie Mae mortgage-backed securities issuer. It offers a range of mortgage solutions to purchasers of factory-built homes. Cavco also holds an insurance subsidiary, Standard Casualty, which provides property and casualty insurance to owners of manufactured homes.
This labor dispute comes at a time when Cavco is recognized as one of the largest home producers in the nation, based on reported wholesale shipments. The outcome of the forthcoming negotiations is awaited with interest by stakeholders and industry observers alike.
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