General Motors (G.M.) – Get a free report stocks rose on Monday following reports that the automaker had reached a tentative labor agreement with the United Auto Workers Union, ending the last of the three major strikes.
Reuters reported on Monday that GM, the latest hurdle following weekend deals between big three rivals Ford and Stellantis with the UAW, has reached a deal that will see workers return to work in the coming days.
UAW President Shawn Fain had called for a new strike against GM over the weekend, citing its “unnecessary and irresponsible refusal to reach a fair agreement” after reaching a tentative contract with Stellantis on Saturday.
The UAW added a plant in Spring Hill, Tennessee, to the list of three facilities already affected by strikes, after failing to reach an agreement following Ford’s advance.
The new action brought GM’s U.S. production level affected by the disruption to more than 50%, leaving it vulnerable to higher costs linked to the dispute after warning earlier this month that the strikes were costing it around $200 million. a week.
GM shares rose 0.9% in early trading Monday to change hands at $27.46 each. Ford shares, which lost more than $4.3 billion in value over the duration of the UAW strikes, fell 0.1% to $9.95 each. Meanwhile, GM shares rose 0.3% to $27.30 each and Stellantis fell 0.05% in Milan.
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