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General Motors Co. has agreed to provide 25% wage increases to United Auto Workers members in their ongoing contract talks, matching the same offer by Ford Motor Co. to end the six-week strike, according to people familiar with the discussions.
The proposal also includes cost-of-living increases over the more-than-four-year contract, according to the people, who were not authorized to speak about the negotiations. The full contract has not been finalized yet, and the two sides continue to discuss details, including how to handle temporary workers, the people said.
GM made the offer at about 4:00 a.m. Friday, the people said. Talks broke up at 5:00 a.m. and resumed at 11:00 a.m.
Any final agreement must be approved by union leadership and then voted on by the company’s union members, a process that could take weeks.
The UAW strike began Sept. 15 and grew to include more than 45,000 workers from GM, Ford and Stellantis NV at eight assembly plants and 38 parts-distribution facilities in 22 states. The walkouts have cost the auto industry billions of dollars, and Ford’s deal with the UAW this week ramped up pressure on its Detroit rivals to wrap up their negotiations and get back to work.
Read More: Ford Agrees to 25% Wage Hike in Tentative Deal to End Strike
Ford said Oct. 26 that the work stoppage had cost the company $1.3 billion. Earlier in the week, GM said its strike costs had reached $800 million. Both companies pulled their earnings guidance after the strike muddied their outlook for the year.
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