The United Auto Workers have reached a deal with General Motors days after the union reached a tentative agreement with
Stellantis
and, nearly simultaneously, expanded its strike at GM.
GM (ticker: GM) and the union reached a tentative agreement Monday, according to people familiar with negotiations. The official word will come from the UAW, likely later on Monday.
The tentative agreement with GM is a key step in ending the strike affecting more than 50,000 workers at GM,
Ford Motor
(F), and Stellantis (STLA). The strike began on Sept. 15 with some 12,000 workers walking out at one facility per auto maker.
Now all three auto makers have agreements. Union members have to vote to accept the deals, but the UAW called on workers to return to work at Ford and Stellantis while the ratification process was unfolding.
GM stock was lower by about 0.3% around noon while the
S&P 500
and
Dow Jones Industrial Average
were up 0.6% and 1%, respectively. The deal is a positive, but weak guidance from automotive chip supplier
ON Semiconductor
(ON) has investors worried about EV demand.
Tesla
(TSLA) stock is down 4.4%.
Earlier on Monday morning, Unifor, the union that represents Stellantis workers in Canada, announced a strike that resolved shortly before 8 a.m. Eastern time. With Stellantis and GM agreements in place, U.S. and Canadian auto workers have new deals with all three auto makers.
Typically, the Canadian deals last three years. Ford and GM’s Canadian agreements include wage increases of about 15% over the life of the contract with some inflation-related adjustments.
The U.S. deals last for about four years. But the 2023 contracts, so far, are designed to run through April 2028. President Shawn Fain said on Sunday one reason for the change is so workers can strike on May 1, or May Day, if they need to. May Day is a celebration of labor in many countries.
Workers are getting raises in the range of 25% plus adjustments for inflation along with other improvements.
The deals just need to be ratified now. That is likely to happen over the coming week or two. If members vote yes, the contentious 2023 labor negotiation season will be over for the Detroit Three.
Write to Al Root at allen.root@dowjones.com
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