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General Motors reaches tentative deal to end UAW strike

Published 31/10/2023, 01:36 am
© Reuters.

General Motors (NYSE:GM) and the United Auto Workers (UAW) have come to a preliminary agreement less than 48 hours after the union began its strike at the Spring Hill Assembly plant in Tennessee, marking the conclusion of the initial joint strike against the Detroit Three automakers.

Details of the agreement have yet to be released.

The UAW secured a preliminary agreement with Ford (NYSE:F) last Wednesday, followed by a similar deal with Stellantis (NYSE:STLA) on Saturday.

Roughly 50,000 employees, a third of the approximately 150,000 union members at the Detroit Three, participated in a series of walkouts that began after the UAW labor contract expired on September 15.

The UAW's approach, which involved gradually intensifying and pinpointed strikes, resulted in financial losses amounting to billions of dollars for the Detroit Three and associated suppliers over a span of over 40 days.

Breaking from tradition, the UAW engaged in negotiations simultaneously with all three automakers for the first time, leveraging the possibility of strikes at pivotal manufacturing plants to expedite a competitive bidding process among the companies.

The pressure was on GM to reach a deal with the UAW, especially in the wake of escalated strike activities at the Spring Hill Assembly, following successful negotiations by Ford and Stellantis.

The GM workers are expected to return to work after an official announcement of the agreement is made.

Shares of GM are down 0.84% in early trading Monday morning.

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