General Motors Co announced on Monday that it has reached a tentative agreement with the United Auto Workers (UAW) to end collective bargaining talks as well as more than six weeks of labor disruptions at the Big 3 US automotive companies.
GM was the final Detroit automaker to reach a deal with the union.
Ford Motor announced its labor agreement on Wednesday, followed by a deal with Chrysler-parent Stellantis on Saturday.
The four-and-a-half-year tentative agreements that were patterned off of Ford’s initial deal, which must still be ratified by members at each of the automakers, include a 25% wage increase for top wage earners to more than $40 an hour, a 68% raise for starting wages to over $28 an hour, the reinstatement of cost-of-living adjustments, as well as the right to strike over plant closures.
The strikes have collectively cost GM, Ford and Stellantis billions of dollars in lost production, with Ford stating last week that its agreement would increase labor costs by roughly $850 to $900 per vehicle produced, CNBC reported.
Deutsche Bank recently estimated the overall cost increase of the agreement at Ford to be $6.2 billion over the term of the agreement; $7.2 billion at GM; and $6.4 billion at Stellantis, the media outlet also noted.
GM previously said the strike had cost it about $800 million.
Shares of General Motors edged 0.1% lower to $27.19 in late-morning trading on Monday and have fallen 20% year to date.
Contact Sean at sean@proactiveinvestors.com