After weeks of strikes affecting the US auto industry, General Motors has finally reached an agreement in principle with the United Auto Workers (UAW). The deal comes days after rivals Ford and Stellantis also reached an agreement with the union, ending a strike that began in mid-September.

A source close to the talks confirmed this significant progress to AFP. When asked about the nature of this preliminary agreement, this source did not provide further details at this stage. However, CNBC reports that talks continued until early Monday morning to finalize the deal.

Several media outlets, including the Wall Street Journal, have also reported sources close to the talks indicating that a deal has indeed been reached, although details have not yet been made public. When contacted by AFP, neither General Motors nor the UAW union wished to comment on this information, preferring to wait for the official ratification of the agreement.

Stellantis and Ford, not General Motors, reacted quickly

The strike was announced on September 15 due to the lack of agreement on collective agreements. She mobilized more than 45,000 of the UAW’s 146,000 members working for the big three of historic American car manufacturers.

Ford reached an agreement in principle after 41 days of strike action, while Stellantis did the same three days later. Sean Fein, president of the UAW, welcomed the agreement with Ford, noting that the manufacturer offered 50% more than the original offer.

These preliminary agreements provide for wage increases during the term of the four-year collective agreement, cost-of-living adjustments, benefits, pension increases and other benefits. Each of these deals includes features related to the automotive group, such as job creation, such as the 5,000 jobs planned at Stellantis.

The agreement with Stellantis calls for a 25% increase in base wages through 2028, the UAW said. For its part, Ford also agreed to a 25% increase in base pay, well above the original 9% offer the group put forward in August.

A historic strike?

A source close to the negotiations said last week that those preliminary agreements still must be ratified by a vote of UAW members, which could take about two weeks. However, the trade union has already announced this Ford and Stellantis employees will return to work without waiting for these votes.

US President Joe Biden, who picketed outside the General Motors plant in late September, hailed the back-to-back deals, hoping to end the strike that has burdened the US auto industry and its workers.

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