General Motors and the United Auto Workers reached a tentative four-year agreement at approximately 11 p.m. EDT Friday, the automaker said in a statement.
The new agreement will bring GM workers back to work from layoff status, create new jobs at the company and bring back jobs from overseas to car factories in the U.S., according to UAW President Bob King.
“We used a creative problem solving approach to reach an agreement that addresses the needs of employees and positions our business for long-term success,” said Cathy Clegg, GM vice president, Labor Relations. “We worked hard for a contract that recognizes the realities of today’s marketplace, enabling GM to continue to invest in U.S. manufacturing and provide good jobs to thousands of Americans.”
Many details of the four-year agreement were not released, but the union said the deal reached late Friday includes some of its major goals, including improvements in profit-sharing, promises of new jobs and better health care benefits.
The proposed contract would recall about 570 GM workers currently on layoff, revive a now-idled assembly plant in Tennessee and pay signing bonuses of about $5,000 for each worker, a person with knowledge of the terms said.
Workers must vote on the plan before it will take effect. Union leaders from around the country have been asked to come to Detroit Tuesday to learn the details so they can explain them to their members. GM says a vote is expected in the next week to 10 days.
The UAW chose to complete negotiations for a new contract with GM first, before reaching a deal with Chrysler and finally with Ford Motor Co, those close to the talks have said.
Ford is the only major U.S. automaker that avoided a government bailout and funded its turnaround on its own.
Most GM workers make around $56 per hour in wages and benefits, less than at Ford but far higher than at other companies like Chrysler and Hyundai Motor Co.