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General Motors (NYSE:GM) and the United Auto Workers (UAW) union are close to reaching a tentative labor agreement that would end a nearly six-week strike, the Wall Street Journal (WSJ) reported on Friday, citing people with knowledge of the talks between the parties.
A contract between the union and GM would come two days after “Detroit Three” rival Ford (F) inked a tentative agreement with the UAW. That deal includes a 25% general wage increase over four years for the 57K Ford (F) workers represented by the union.
According to WSJ, the union and GM negotiated throughout Thursday night and into Friday morning, and reconvened in the early afternoon in a push to secure a deal.
General Motors (GM) and the UAW did not immediately respond to requests for comment from Seeking Alpha.
GM has presented an offer overnight to the union that is similar to the agreement struck with Ford (F), WSJ said, citing the people with knowledge of the talks.
WSJ added that UAW president Shawn Fain and GM top boss Mary Barra met along with negotiators for several hours on Thursday. The people with knowledge of the talks cautioned that it was unclear if a deal was imminent because the talks were fluid.
According to Mich.-based consultancy Anderson Economic Group, five full weeks of the UAW strike has so far cost more than $9.3B in economic losses for the auto industry, with more than $4B of those coming in original equipment manufacturer losses.
General Motors (GM) stock was down 4.4% to $27.30 in late afternoon trade on Friday. Ford (F) had slumped 12% to $9.99, after the carmaker withdrew its 2023 guidance.