General Motors climbs after agreeing to tentative labor deal with UAW that could end month-long strike

UAW strikeReuters

  • Shares of General Motors climbed as much as 2.5% Wednesday on the announcement of a proposed tentative labor contract with the United Auto Workers union.
  • The UAW said in a press release emailed to Markets Insider on Wednesday that the union sent a proposed deal to the UAW GM National Council for approval.
  • Details of the deal were not released, but UAW said it represents "major wins" for workers.
  • The announcement follows weeks of striking by 48,000 GM workers that has sent shares of the company sliding close to 5% over the last month.
  • Watch GM trade live on Markets Insider.

General Motors' stock price rose as much as 2.5% Wednesday after the United Auto Workers labor union announced the two parties agreed on a tentative labor contract that could end a month-long strike.

The UAW said in a press release emailed to Markets Insider that a proposed contract has been sent to the UAW GM National Council for approval. According to the release, the council will meet privately on October 17 to vote on the proposal.

No details of the contract were announced, except that it represents "major gains" for UAW workers, the union said in the release.

"The number one priority of the national negotiation team has been to secure a strong and fair contract that our members deserve," UAW Vice President Terry Dittes said in a statement.

He continued: "Out of respect for our members, we will refrain from commenting on the details until the UAW GM leaders gather together and receive all details."

The announcement comes on the back of a more than month-long strike by 48,000 GM workers. The automaker's share price has fallen almost 5% since the strike began in mid-September.

The strike started due to disagreements over pay, healthcare costs, and the company's use of temporary workers. It's also the largest employee walkout in the auto industry in more than a decade.

Shares of GM are up more than 10% year-to-date.

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