GM, UAW in intensive talks to reach new contract
By David Shepardson
(Reuters) — Talks between General Motors (NYSE:GM) and the United Auto Workers went on until about 5 a.m. (0900 GMT) Friday as they engage in intensive bargaining to try to reach a labor contract deal to end a six-week-old strike.
Ford Motor (NYSE:F) on Wednesday was the first of Detroit's Big Three car manufacturers to negotiate an agreement to settle strikes joined by 45,000 Detroit Three auto workers since mid-September. The deal will likely set a pattern for new contracts with GM and Chrysler parent Stellantis (NYSE:STLA).
GM and UAW negotiators were reconvening later on Friday after the all-night session with the hope of soon reaching a deal. The UAW also held lengthy talks Thursday with Stellantis.
GM CEO Mary Barra and UAW President Shawn Fain took part in talks on Thursday. GM and the UAW were very close on economic topics but some final issues including the use of temporary workers remained under discussion, sources said.
The Ford agreement, which still must be ratified by union members, includes a 25% wage hike over the life of the 4-1/2-year contract, a boost in retirement contributions, and the elimination of lower-pay tiers for workers in certain parts operations at Ford.
It also reduces the time to get to top pay to three years from eight, and the UAW won the right to strike over plant closures.
The deal amounts to total pay hikes of more than 33% when compounding and cost-of-living mechanisms are factored in, the UAW said.
Ford Chief Financial Officer John Lawler said Thursday the strike had cost the automaker $1.3 billion in earnings and 80,000 vehicles.
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