General Motors (NYSE:GM) and the Canadian labor union Unifor have reached a preliminary agreement on Tuesday, just hours after union employees initiated a strike at three GM facilities.
The union revealed that this preliminary agreement aligns with the prior agreement Unifor had established with Ford Motor (NYSE:F) in the previous month. Notably, a salary increase of as much as 25%.
“When faced with the shutdown of these key facilities General Motors had no choice but to get serious at the table and agree to the pattern," said Unifor National President Lana Payne.
Management also agreed to items it had initially fought, including pensions, retiree income supports and converting full-time temporary workers into permanent employees.
The strike had posed a potential risk to the productivity of the American automaker's profitable full-size truck production had it endured.
The employee walkout on Tuesday was prompted by Unifor's declaration that GM was being stubborn in refusing to match the contract agreed upon by the labor union and Ford.
The work stoppage was primed to further complicate the challenges faced by the automaker in the United States, where it is already facing daily losses due to the UAW strike that began on September 15.
The UAW strike affected two GM assembly plants in the United States and 18 parts distribution centers, resulting in the layoff of 2,300 U.S. workers due to repercussions.
Shares of GM are up 1.60% in afternoon trading on Tuesday.