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GM and Stellantis are in intense union talks to reach a new contract, and there are no deals yet

GM and Stellantis are in intense union talks to reach a new contract, and there are no deals yet

The GM logo appears on the facade of General Motors headquarters in Detroit, Michigan, US, on March 16, 2021. REUTERS/Rebecca Cook/File Photo Obtaining licensing rights

Oct 27 (Reuters) – Talks between Chrysler parent Stellantis (STLAM.MI) and the United Auto Workers continued late Friday afternoon as they engaged in intense negotiations to try to reach a labor contract agreement to end the six-week strike. While more talks are expected with General Motors (GM.N).

Ford Motor (FN) on Wednesday was the first of Detroit’s Big Three automakers to negotiate an agreement to settle strikes that 45,000 Detroit Three auto workers have joined since mid-September. The deal will likely set a pattern for new UAW contracts with GM and Stellantis.

Both GM and Stellantis agreed as expected to match Ford on key economic terms including a 25% pay raise, but some final critical issues including the use of temporary workers remained a major point of contention, the sources said. There was no settlement as of 5 p.m. EST, sources said.

Talks with GM and Stellantis that began on Thursday extended into the early hours of Friday before being postponed and then resuming later on Friday.

GM CEO Mary Barra and UAW President Sean Fine participated in Thursday’s talks while Fine was at the Stellantis offices in suburban Detroit on Friday afternoon for the discussions.

GM shares closed 4.6% lower at $27.22. Stellantis shares closed 2.4% lower at $18.04 in New York.

Ford’s agreement, which still must be ratified by union members, includes a 25% wage increase over the contract’s four-and-a-half-year term, increased retirement contributions, and the elimination of low pay levels for corporate workers. Certain parts operations at Ford.

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It also reduces the time needed to earn top pay to three years instead of eight, and the UAW wins the right to strike over plant closures.

The deal amounts to total pay increases of more than 33% when aggravation mechanisms and cost of living are taken into account, the UAW said.

The strike cost the automaker $1.3 billion in profits and 80,000 vehicles, John Lawler, Ford’s chief financial officer, said Thursday.

(Reporting by David Shepardson in Washington and Joseph White in Detroit) Editing by Chizuo Nomiyama, Peter Henderson and Matthew Lewis

Our standards: Thomson Reuters Trust Principles.

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