GM, union near deal to end 30-day U.S. strike, sources say

WASHINGTON General Motors Co and the United Auto Workers union were near a deal on Tuesday to end a 30-day strike that has cost the automaker about US$2 billion after chief executive Mary Barra and president Mark Reuss took part in contract talks, according to two people briefed on the matter.

While a final agreement has not been announced, the No. 1 U.S. automaker and the union have agreed to terms on most issues but were finalizing the wording on some matters, said the people, who asked not to be identified as the talks were ongoing. A deal will likely be announced on Wednesday.

GM declined to comment on the involvement of its top two executives in the negotiations. A UAW spokesman declined to comment.

GM shares reversed early declines and closed up 2.1 per cent to US$36.26 on Tuesday. The stock is down about six per cent since the strike began.

The UAW scheduled a meeting for Thursday morning to update local union representatives on the status of the talks, sources previously said.

Barra had met with UAW president Gary Jones and the union’s lead negotiator, Terry Dittes, on Oct. 9 to push for a swift resolution to the strike.

The strike began on Sept. 16, with about 48,000 hourly workers of the UAW union at GM seeking higher pay, greater job security, a bigger share of profit and protection of health care benefits. Other issues on the table included the fate of plants GM has indicated it may close, and the use of temporary workers.

After GM angered UAW negotiators last week by appealing directly to workers and revealing details of the Detroit automaker’s latest offer, the sides have continued talking. The UAW made a counter offer to GM on Friday.

Details of GM’S revised offer emerged over the weekend and included an increase of its proposed ratification bonus by US$1,000 to US$9,000. GM also proposed three-per-cent pay raises in the second and fourth year of the four-year contract and three-per-cent and fourper-cent lump sum payments in the first and fourth year, respectively.

It agreed to make temporary workers with three years of service permanent and give those workers a US$3,000 ratification bonus.

GM is eager to bring the strike to an end. The company has missed out on about US$2 billion of earnings as a result of the walkout, which will cost striking workers about US$2,000 of profit sharing, analysts at Bank of America Merrill Lynch estimated.