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The United Auto Workers strike is set to end as the union has reached a preliminary agreement on a new contract with General Motors (GM).


According to sources cited by CNBC, the United Auto Workers strike is soon to come to an end as the union and General Motors announced a preliminary agreement on a new contract on Monday.

This breakthrough comes just days after similar deals with Ford and Stellantis.

On Wednesday, the union announced a framework agreement with Ford, and on Saturday, an agreement was reached with Stellantis, the maker of Ram, Dodge, and Chrysler vehicles.

These pacts will need to be approved by UAW local leaders and then ratified by a simple majority of each automaker's union-represented workers, a process that will take several days.

Approximately 13,000 UAW members went on strike on September 15 after their previous contract with the "big three" Detroit automakers expired. This number gradually increased to 40,000 out of 146,000 union members who walked off the job. This slowdown disrupted production for each company, and the consequences grew over time.

GM stated on Tuesday that the strike would reduce its annual profit before taxes by $800 million and was costing the company $200 million per week at that point.

If members approve the contracts, they will last for 4.5 years. UAW members will receive an initial 11% wage increase and a 25% wage increase during the deal. The new contract also restores cost-of-living adjustments, allows workers to reach maximum wage rates in three years instead of eight, and protects workers' right to strike over plant closures, among other expanded benefits.

UAW members agreed to forgo cost-of-living adjustments following the Great Recession of 2007-08, which forced GM and Chrysler to accept government aid and subsequent corporate restructuring.

This was the first time UAW members simultaneously went on strike at all three companies. In the past, the union would target one company to get it to the negotiating table and then push the other two leading automakers to accept similar terms.

The tactic of starting with a limited strike and gradually expanding it was also unconventional. UAW President Ray Curry, who took office in March, said he was inspired by the union's "sit-down strike" against GM nearly 90 years ago.

The shift to electric vehicles and away from internal combustion engines was also a key area of contention as the union accused the "big three" of intending to move jobs from union-represented manufacturing plants to lower-wage facilities where batteries are produced. Later, UAW reported that GM had agreed to include workers at these battery plants in the new contract.

The preliminary agreement means GM employees will return to work, as Ford and Stellantis workers did following announcements of those agreements.