UAW Reaches Tentative Contract Deal With GM

The United Auto Workers said Wednesday it has reached a tentative agreement on a new contract with General Motors Company GM, setting the stage to end a 31-day strike against the automaker.

Full details of the agreement weren't disclosed. UAW GM Vice President Terry Dittes said in a statement the agreement represented "major gains" for its workers, but said the union wouldn't comment yet on details.

See Also: Here's How Much The General Motors-UAW Strike Has Cost Automaker, Workers

What's Next

The 48,000 striking employees could be back to work later this week.

The UAW GM National Council said it would meet Thursday for a vote on whether to recommend the tentative deal to the full membership, and whether to continue the strike until members ratify the agreement, or stop it pending full membership approval. Ratification would likely take at least a week.

Some Details Reported

The Detroit Free Press reported workers won't have to pay more for health care under the deal, and would get bonuses of more than $8,000 each. That money would help mitigate some of the cost to workers of the strike. Analysts said this week GM was losing $100 million a day from the strike, and that would eat into profit sharing for employees.

The two sides had reportedly been getting farther apart, but GM CEO Mary Barra reportedly stepped in this week in an effort to force the sides closer together and reach a deal.

It wasn't immediately clear whether the deal would include pay increases, or what it says about GM's plans for production in the United States versus other countries. Another key issue in talks was the use of temporary workers.

GM shares were up 1.3% to $36.76 at time of publication.

Photo credit: Dwight Burdette