The United Auto Workers announced a potentially strike-ending tentative agreement with General Motors on Wednesday, and while its exact contents aren't known, it's expected to fix some of the key issues that caused autoworkers to walk off the job more than a month ago.
Continue Reading Below
The tentative agreement is expected to appease autoworkers who were concerned by GM's plan to idle the Detroit-Hamtramck Assembly Plant in Michigan by placing production of an electric truck there. Meanwhile, the fate of the shuttered plant in Lordstown, Ohio, is unknown.
|GM||GENERAL MOTORS COMPANY||54.84||+4.87||+9.75%|
The agreement is also expected to make a pathway for temporary workers to become permanent employees after three years of consecutive service to the company. The number of temporary workers on GM's payroll fluctuates, but they typically make up about 7% of its hourly workforce.
In addition, it is expected that GM agreed to back down from making workers pay for a larger share of their health insurance costs. GM autoworkers are responsible for an extremely low cut of their health insurance costs — 3%. GM wanted to up that share to 15%, which is basically half the amount the average American worker pays, but GM employees were not having it.
GM's Mexico production was another sticking point in the negotiations. The company's decision to open and invest in plants in Mexico while closing others in the U.S. is a sticking point for many UAW members on strike.
Local UAW chapter leaders and the UAW GM National Council are expected to vote on the tentative agreement on Thursday. If they approve the deal, it will be up to rank-and-file members to ratify it. UAW members are remaining on strike as they await the results of Thursday's vote.
FOX Business' Grady Trimble contributed to this report.