Details of the agreement were not immediately available. The agreement was approved by Terry Dittes, UAW's chief negotiator at GM.
The interim agreement must be approved by the union leadership as well as by the ordinary union members at GM before it can enter into force. UAW officials from across the country had already gathered in Detroit on Thursday. This had been interpreted as a sign that both sides were approaching a store.
It is not yet clear when the workers will return to work. The union statement states that the meeting on Thursday will decide whether to work again or stay on strike until the simple vote takes place. The ratification process can take a week or more.
priority of the National Negotiating Team was to secure a strong and fair contract that our members deserve," said Dittes.
The strike was the largest in a US company since GM's last strike in 2007. However, this strike was over within three days. This is the longest major strike in the auto industry for more than 20 years.
It might be difficult to obtain a base approval for the deal, although strikers would likely return to work after four weeks of paychecks. However, it is known that membership rejects provisional agreements by trade union leaders. This happened in the last round of car contract negotiations four years ago, when members of Fiat Chrysler rejected the original deal submitted to them.
GM was careful not to say too much about the deal, perhaps out of concern that it would convince Some workers felt that it was too much for the company.
"We can confirm the UAW's statement on a proposed interim agreement, and more details will be provided in due course," GM said solely on the agreement.
But GM investors liked the news. The shares of GM ( GM ) increased in midday trading by almost 2%, with most of the gain coming from the news of the business. GM's shares have still fallen 5% since the strike started.
The strike has stopped work at 31 GM factories and 21 other facilities in nine states, mostly in the middle of the United States. This also led to layoffs at other GM plants in Mexico and Canada, which had to be closed due to the disruption of their supply chains. Many of the 10,000 US suppliers who provide auto parts and other goods and services to GM employees also fired employees. It is estimated that this has left up to 200,000 additional workers in these companies idle.
If the strike ends this week, GM estimates the Anderson Economic Group will have lost $ 1.5 billion in profits. The group also estimates that strikers have lost around $ 800 million in wages. Last weekend, the union raised its strike benefits by 10% to $ 275 a week. But that's still far less than the more than $ 30 an hour experienced workers receive when they work at GM.
The union demanded that some of the vehicles that GM now build in Mexico should return to US factories. GM announced plans to close four US plants last November. These works employed approximately 3,000 UAW members at the time of the final announcement. According to a person familiar with the talks, GM claims to have found additional jobs for some 2,300 of these workers, but many had to move to take on these other jobs.
The company has offered to invest $ 8.3 billion in genetically modified assets. That is an increase of more than $ 1 billion compared to the offer at the beginning of the strike. This investment creates or protects around 5,400 jobs. However, the union continued to press for the relocation of vehicles from GM plants in Mexico, where about 800,000 cars and trucks were built last year. Lower wages and lower wages than permanent employees. GM said Friday that its offer included a way for these temporary workers to become permanent GM employees. GM said it offers salary increases or lump-sum payments to UAW members for each of the four years of the contract, as well as improved profit sharing and a signing bonus.
GM and other automakers are dealing with declining US auto sales and need to spend billions to develop electric and self-propelled vehicles, They are seen by many as the future of the industry. GM has announced that much of the $ 6 billion a year that will be saved through the closure of plants will be invested in these research and development efforts. China is now the largest market for automobiles. The union said its members made sacrifices to save the company 10 years ago when it went bankrupt and salvaged. Given the record profits reported since then, the workers would have earned compensation for these victims.
The talks had taken numerous turns before the announcement on Wednesday. The two sides seemed to come to an agreement two weeks ago, but on October 6, the UAW sent a membership update, saying that the negotiations had "turned bad".
Three days later, GM CEO Mary Barra asked for a personal conversation with the union negotiators, the first time since the strike began, that she had met them. The GM management sent a letter to employees on Friday defending the company's latest offer and demanding the cessation of work – the longest in the auto industry for more than 20 years. The union responded with a statement blaming management for the ongoing strike. On Tuesday, Barra and other high-level corporate executives met for the first time during the strike with the entire UAW negotiating team.