A worker strike that could have hampered General Motors’ production is no longer an immediate threat to the nation’s largest automaker. The United Auto Workers union and GM reached a tentative agreement late Sunday, avoiding a work stoppage.
The union did not disclose details of the deal, which covers 52,600 members at GM. UAW officials said in a statement that the agreement will give workers “significant” wage gains and job security protections. It also gives entry-level workers a path to reach the more senior worker class, where wages are higher.
The UAW-GM deal comes a few days after union members officially ratified a new deal with Fiat Chrysler Automobiles. That agreement was the second attempt by UAW and FCA to broker a contract that satisfied workers. The first was dismissed with a 65% no vote—the first time UAW members had dismissed a national agreement in 33 years.
While the UAW used its deal with FCA as a blueprint in its negotiations with GM, the union sought to secure sweeter terms for GM workers given the automaker’s recently improved financial performance. The company reported a $3.1 billion operating profit in its quarterly earnings last week.
Union leaders will vote to ratify the deal on Wednesday. The UAW’s rank-and-file who work at GM’s U.S. plants will have a chance to approve the deal shortly thereafter. Should UAW members okay the contract with GM, the agreement will likely serve as a roadmap for the union’s talks with Ford.