![GM reaches tentative deal with UAW, ending strikes at Detroit automakers after six weeks](https://image.cnbcfm.com/api/v1/image/107325405-16986735261698673521-31811717966-1080pnbcnews.jpg?v=1698673525&w=750&h=422&vtcrop=y)
DETROIT — The United Auto Employees and General Motors have agreed to a deal that may put an end to collective bargaining talks between the union and Detroit automakers following greater than six weeks of targeted U.S. labor strikes, sources told CNBC.
GM is the ultimate Detroit automaker to reach a cope with the union following historically contentious talks. Tens of 1000’s of employees across the country went on strikes after the perimeters failed to reach agreements by a Sept. 14 deadline.
Two sources acquainted with the GM-UAW talks said negotiations occurred last night and into the early morning to reach an agreement. News of a deal was first reported Monday by Bloomberg.
Spokespeople with the UAW and GM declined to comment Monday.
Ford Motor was the primary to reach a tentative agreement with the union, on Wednesday, followed by a cope with Chrysler parent Stellantis on Saturday.
The 4½-year tentative agreements must still be ratified by members at each of the automakers. The headline economics of the deals, corresponding to 25% wage increases, were patterned off Ford’s initial deal.
United Auto Employees (UAW) members strike at a General Motors assembly plant that builds the U.S. automaker’s full-size sport utility vehicles, in one other expansion of the strike in Arlington, Texas, October 24, 2023.
James Breeden | Reuters
The raises and advantages cumulatively boost the highest wage to greater than $40 an hour, including a rise of 68% for starting wages to over $28 an hour, the union said of the Ford and Stellantis deals.
Those deals also reinstated cost-of-living adjustments, reduced an eight-year path to top wages to three years and allowed the proper to strike over plant closures, amongst other significantly enhanced advantages.
Sources told CNBC the GM deal matches those improvements.
The strikes have collectively cost GM, Ford and Stellantis billions of dollars in lost production. Ford said Thursday that the union’s strike has cost it $1.3 billion and the deal, if ratified by members, would increase labor costs by roughly $850 to $900 per vehicle produced.
GM said Tuesday the strike had cost it about $800 million.
The proposed agreements are record-setting for the union, which was much more confrontational and strategic in the course of the talks than in recent history.
The union initiated negotiations with all three automakers without delay. This was a break from recent history when UAW leaders would bargain with each automaker individually, select a lead company to focus efforts on after which pattern the remaining deals off a number one tentative agreement.
It is not immediately clear how much the labor deals will increase labor costs for the businesses, which had argued that giving in to all the union’s demands would affect their competitiveness and even long-term viability.
Deutsche Bank recently estimated the general cost increase of the agreement at Ford to be $6.2 billion over the term of the agreement, $7.2 billion at GM, and $6.4 billion at Stellantis.
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