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GM reaches 'tentative' deal with striking UAW workers | GM reaches 'tentative' deal with striking UAW workers |
(about 1 hour later) | |
The United Auto Workers (UAW) union has announced a tentative deal with General Motors after weeks of negotiations and one of the longest strikes in the company's history. | The United Auto Workers (UAW) union has announced a tentative deal with General Motors after weeks of negotiations and one of the longest strikes in the company's history. |
The four-year agreement, which would cover almost 50,000 workers, signals a possible end to the month-long walkout, which has halted work at factories and cost the carmaker millions of dollars. | |
The deal remains subject to approval by UAW leaders and its members. | The deal remains subject to approval by UAW leaders and its members. |
Details were not immediately available. | Details were not immediately available. |
Negotiations have covered wages, healthcare, profit-sharing and job security. | |
The union has also been fighting to stop GM from closing car assembly plants in Ohio and Michigan, which the company has said were necessary in response to a slowdown in auto sales. | |
Union negotiators said the accord included "major gains" for members. | Union negotiators said the accord included "major gains" for members. |
"The number one priority of the national negotiation team has been to secure a strong and fair contract that our members deserve," said UAW vice president Terry Dittes, director of the UAW GM department. | "The number one priority of the national negotiation team has been to secure a strong and fair contract that our members deserve," said UAW vice president Terry Dittes, director of the UAW GM department. |
"Out of respect for our members, we will refrain from commenting on the details until the UAW GM leaders gather together and receive all details." | "Out of respect for our members, we will refrain from commenting on the details until the UAW GM leaders gather together and receive all details." |
GM confirmed the tentative agreement, but declined to provide further details. | GM confirmed the tentative agreement, but declined to provide further details. |
Necessary response | Necessary response |
Shares in General Motors rallied about 2% after the announcement. However, the UAW must vote to end the strike before staff return to work. | Shares in General Motors rallied about 2% after the announcement. However, the UAW must vote to end the strike before staff return to work. |
The strike started last month after the union's previous four-year contract with GM expired. It is the first stoppage since 2007, when there was a two-day walkout. | The strike started last month after the union's previous four-year contract with GM expired. It is the first stoppage since 2007, when there was a two-day walkout. |
GM reported profits of $8bn last year, but it has maintained a focus on remaining nimble, unveiling plans to close existing plants or shift investments, as costs rise, sales slow and the industry shifts to self-driving and electric cars. | |
However, workers say they have been patient as the car giant recovered from the troubles that forced a government-led bailout in 2009. | However, workers say they have been patient as the car giant recovered from the troubles that forced a government-led bailout in 2009. |
At the time, workers agreed to pay caps and to allow GM to hire temporary workers, who receive lower pay. The union had hoped to remove those concessions this time around. | |
Negotiations started in July, but the two sides failed to reach a deal by September, leading to the strike. | |
It is the longest in decades and its impact has been felt throughout the Michigan economy. | It is the longest in decades and its impact has been felt throughout the Michigan economy. |
Analysts estimate it is costing GM about $90m a day. Workers have been relying on strike pay of about $250 a week from the UAW. | |
Any deal is expected to set the tone for negotiations with other carmakers, including Ford and Chrysler. | Any deal is expected to set the tone for negotiations with other carmakers, including Ford and Chrysler. |