GM, UAW Reach Tentative Agreement, Potentially Putting An End To Costly 6-Week Strike

More than six weeks into a strike, General Motors Co GM has reached a tentative deal with the United Auto Workers that would put an end to collective bargaining talks. 

What To Know: According to a Bloomberg report citing people familiar with the matter, General Motors and the UAW reached a tentative agreement Monday, putting an end to a series of strikes that have hamstrung U.S. auto production for the last month-and-a-half. 

General Motors is the last of Detroit's big three automakers to reach a deal with the union. The deal is reportedly similar to the agreements reached with Ford Motor Co F and Stellantis N.V. STLA and includes a 25% hourly pay increase and cost-of-living allowances over the four-and-a-half-year contract. 

See Also: Unifor Union Launches Strike Action At Stellantis Amid Contract Deadlock

Pay and benefits for GM workers are expected to amount to anywhere from $28 an hour for those just starting out to more than $40 an hour at the top of the range. 

Last week, GM reported third-quarter financial results, beating analyst expectations on the top and bottom line, but pulled its full-year earnings guidance, citing headwinds related to the ongoing UAW strikes. 

With a deal now in place, it shouldn't be long before we get more clarity on the impacts associated with the strikes, which initially began in mid-September.

GM Price Action: General Motors shares were down 1.15% at $26.93 at the time of publication, according to Benzinga Pro.

Photo: Dane from Flickr.