Talks between General Motors (GM.N) and the United Auto Workers resumed on Friday as they engage in intensive bargaining to try to reach a labor contract deal to end a six-week-old strike. Discussions with Chrysler parent Stellantis (STLAM.MI) were scheduled to resume soon.
Ford Motor (F.N) on Wednesday was the first of Detroit's Big Three car manufacturers to negotiate an agreement to settle strikes joined by 45,000 Detroit Three auto workers since mid-September. The deal will likely set a pattern for new contracts with GM and Stellantis.
Talks with GM and Stellantis which began on Thursday stretched in to the early hours on Friday before they adjourned. GM resumed talks at 11 a.m. EDT on Friday and Stellantis was expected to resume at 1 p.m. Both automakers hope to reach agreements soon, sources said.
GM CEO Mary Barra and UAW President Shawn Fain took part in Thursday's talks. Both GM and Stellantis and the UAW were very close on economic provisions but some final issues including the use of temporary workers remained under discussion, the sources said.
GM shares were down 2.6% at $27.82 at midday, after hitting a low of $27.32, the weakest intraday price since August 2020. Stellantis shares were down 1.3% at $18.24 in New York.
The Ford agreement, which still must be ratified by union members, includes a 25% wage hike over the life of the 4-1/2-year contract, a boost in retirement contributions, and the elimination of lower-pay tiers for workers in certain parts operations at Ford.
It also reduces the time to get to top pay to three years from eight, and the UAW won the right to strike over plant closures.
The deal amounts to total pay hikes of more than 33% when compounding and cost-of-living mechanisms are factored in, the UAW said.
Ford Chief Financial Officer John Lawler said on Thursday that the strike had cost the automaker $1.3 billion in earnings and 80,000 vehicles.
