The United Auto Workers union and General Motors Co. have
reached a tentative agreement on a new four-year contract, avoiding a strike
for now.
The UAW said the agreement was reached at 11:43 p.m.
Sunday, 16 minutes before the deadline it had set to either reach an agreement
or call a strike at GM's U.S. plants.
Details of the proposed contract weren't immediately
available. The UAW said local union leaders will meet Wednesday in Detroit to
vote on the tentative agreement. If they approve it, GM's U.S. hourly workers
will vote on it.
The agreement covers 52,600 U.S. auto workers at 63 GM
facilities in the U.S.
UAW President Dennis Williams said the proposed deal will
provide "long-term, significant wage gains and job security benefits now
and in the future." The union also hinted that this agreement - like a
contract passed last week by Fiat Chrysler workers - gradually will eliminate a
much-hated two-tier wage system in the plants.
GM said in a statement that the agreement benefits
employees but still provides flexibility to the company. The company said it
would not comment further until the agreement is ratified.
The union told GM on Saturday that it would terminate its
contract just before midnight Sunday. The UAW made a similar strike threat in
discussions with Fiat Chrysler, but negotiators also were able to avoid a
walkout then.
On Thursday, union members at Fiat Chrysler voted to
approve a four-year contract that includes pay raises and phases out the
two-tier wage system over eight years.
Williams indicated that the union wanted even better
deals from GM and Ford Motor Co. because they are more profitable. The UAW
hasn't yet reached a tentative agreement with Ford.
GM reported last week that it earned $1.36 billion in the
third quarter, including a record $3.3 billion pretax profit in North America
on strong sales of trucks and SUVs. The company overcame $1.5 billion in costs
from recalls over deadly ignition switches and beat Wall Street profit
forecasts by a wide margin.
Executives said they believe they can negotiate a union
deal that lets GM maintain 10 percent pretax profit margins in North America.
This story has been corrected to show that the agreement
covers auto workers at 63 General Motors Facilities, not 62.
Source: Philly.com
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