The United Auto Workers (UAW) union has reached a tentative agreement with the US defense contractor General Dynamics (NYSE:GD) over a new labor contract, the company announced Monday.
The deal narrowly averts a strike, which the more than 1,000 union workers at General Dynamics (NYSE:GD)’ Michigan, Ohio and Pennsylvania had voted to authorize if the current four-year contract expired on Tuesday.
The deal will still need to be ratified by UAW membership.
General Dynamics is one of the largest defense contractors in the US, producing weapons systems, munitions and combat vehicles. Its biggest client is the US government, and the Abrams tanks it builds are currently being used by Ukraine.
Shares of General Dynamics shook off early losses to trade just above the flatline Monday morning.
.Meanwhile, the UAW’s strike against the big three automakers — Ford, General Motors and Stellantis — is still ongoing.
The union announced Monday morning that it would expand its strike against Stellantis, with the union calling the automaker’s offer, “the worst proposal on the table regarding wage progression, temporary worker pay and conversion to full-time, cost-of-living adjustments (COLA), and more,” in a statement.
Roughly 6,800 workers will strike the company’s Sterling Heights Assembly Plant in suburban Detroit, which produces Ram 1500 full-size pickup trucks.
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