UAW, GM Reach Tentative Agreement

The United Auto Workers union says it reached tentative agreement on a four-year labor contract with General Motors Co. late Sunday.

The union, which offered few details, says the pact includes “significant” pay and job security improvements. GM described the deal as “constructive” in enhancing employee benefits while providing the company operational flexibility.

The UAW’s previous four-year contract with GM expired on Sept. 14. The union had notified GM over the weekend it would cancel the extension of that agreement at midnight Sunday. Last night’s settlement averts the possibility of a strike.

Like last week’s UAW contract agreement with Fiat Chrysler Automobiles, the GM pact is likely to give veteran workers their first hike in hourly pay in years, and narrow the pay gap introduced by the industry’s two-tier wage system introduced several years ago.

Union locals that represent UAW workers at the company will convene their leaders in Detroit on Wednesday to review the deal and decide whether to present it to GM workers for a ratification vote.