The automaker averted a strike after reaching a last minute tentative labor agreement. The union says it got ''significant wage gains.'' Fred Katayama reports.
No strike at GM. The automaker reached a tentative deal with the United Auto Workers. UAW president Dennis Williams said the new four-year contract contained what he called "significant wage gains and job security commitments." A General Motors spokeswoman called it "good for employees and the business." The contract covers nearly 53,000 U.S. workers at GM. No details were disclosed. But the UAW used its earlier contract with Fiat Chrysler as the blueprint for talks with GM. That deal eliminated the two-tier wage system which paid veteran workers a lot more than newer hires. GM has fewer second tier workers than Fiat Chrysler, so it hoped to cut its labor cost disadvantage through the talks. GM is on a roll. Robust truck sales in North American helped the automaker produce its most profitable quarter ever. The Wall Street Journal says a strike could have cost GM as much as $1.2 billion in revenue each week. GM shares, now in the black this year on the heels of that earnings report, shedding some of those gains in early trading. Local union leaders are expected to approve the proposed deal when it's presented to them on Wednesday. It then goes to the rank and file for a vote.