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UAW and General Motors Reach Tentative Agreement in Auto Strike

UAW and General Motors Reach Tentative Agreement in Auto Strike
UAW and General Motors Reach Tentative Agreement in Auto Strike
Bill PuglianoGetty Images
  • The Associated Press says a tentative agreement has been reached in the United Auto Workers strike against General Motors that started September 16. Reuters had reported Tuesday night, citing unnamed sources, that a settlement could be coming.
  • Reuters said GM CEO Mary Barra and president Mark Reuss participated in contract talks and noted that GM has lost about $2 billion to date.
  • The UAW's chief negotiator confirmed to CNN this morning that the deal has been reached.

    UPDATE 10/16/19, 11:30 a.m.: The Associated Press has reported that the United Auto Workers and General Motors have reached a tentative agreement that still needs to go to a vote, first by union committees and then by the entire union membership. The proposed contract is four years in duration. This is a developing story; we will update with details.

    The five-week-long strike against General Motors appears to have been settled, as UAW chief negotiator Terry Dittes confirmed to CNN today that a tentative deal has been reached. Union leaders from around the country will be converging on Detroit for a Thursday meeting that had already been announced earlier this week. They must approve the deal and then the full union membership will vote on it. Details of what the new contract might contain are not yet available.

    CNN noted that workers could remain on strike until the contract is fully ratified, or they could be returning to work sooner that that.

    The Tuesday Reuters report, citing two unnamed people with knowledge of the negotiations, said GM's top leaders, CEO Mary Barra and president Mark Reuss, participated in negotiations with United Auto Workers representatives and were said to be ironing out final details prior to announcing an agreement on Wednesday. Barra also met with UAW representatives on October 9.

    The UAW has been on strike since September 16, and the action has idled about 46,000 workers. Areas of disagreement include health-care benefits, wages, protections for temporary workers, and job security as well as the union's demand for an end to importation of GM vehicles made in other countries such as Mexico.

    The Center for Automotive Research (CAR) has estimated the cost of the strike at about $450 million per week for GM and $12 million a week for the UAW, which has a fund to pay workers a flat $250 per week while they are on strike.

    The Wall Street Journal reported Tuesday on some of the content of the negotiations. The paper said that General Motors has offered to give workers raises in each of the four years a new contract would cover, distributed in the form of both wage hikes and bonuses. GM has offered amounts in the 3 percent to 4 percent range per year, the paper said. GM also has proposed to reduce how many years a newly hired employee must work in order to qualify for the top $30 per hour wage.

    This story will be updated as new information becomes available.