General Motors reached a tentative agreement with the United Auto Workers to end a 6-week-old strike with similar terms to the deal signed earlier by Ford Motor Co., according to people familiar with the matter.
The deal includes a 25% hourly pay raise plus cost-of-living allowances over the more-than-four-year contract, according to the person, who wasn’t authorized to speak publicly. GM’s tentative agreement has similar economic terms to Ford’s but it is unclear if there are differences in retiree benefits, which has been a sticking point, according to the person.
The agreement still needs to be approved by GM’s union members.
GM’s shares jumped 3.9% on the news before paring gains in pre-market trading. The were up 1.1% as of 9:29 a.m. Eastern time.
The UAW expanded its walkout at GM on Saturday by calling for another strike at the automaker’s Spring Hill, Tenn., plants. The UAW had previously targeted eight assembly plants and 38 parts-distribution facilities from GM, Ford and Stellantis since the strike began Sept. 15, including at GM’s Arlington, Texas, facility that makes SUVs and a pickup truck plant in Missouri. The strikes at Ford and Stellantis ended when those companies reached tentative deals with the union.
