ADVERTISEMENT

UAW Reaches Deal With GM Contractor, Easing Risk for Carmaker

UAW Mulls Prolonging GM Walkout Until Contractor Strike Ends

(Bloomberg) -- The United Auto Workers union reached a tentative agreement with a maintenance contractor for General Motors Co., potentially reducing the risk of a longer walkout at the carmaker’s assembly plants.

The UAW began a strike on Sept. 16 involving more than 850 workers for Aramark, which handles maintenance at five GM plants in Michigan and Ohio. While the union reached an accord with GM on Wednesday, the lack of a deal with Aramark until Thursday afternoon was complicating deliberations on how to proceed with ratification of the contract with the carmaker.

The union debated Thursday whether to delay a return to work at GM until the Aramark strike was settled, according to people familiar with the matter. One option would be to go ahead with a ratification vote by GM’s 48,000 members, but for those workers to refuse to cross picket lines if the maintenance employees remain on the picket lines. It’s possible this would affect only the five plants under contract with Aramark.

GM shares fell 1.3% on Thursday to close at $36.19. The stock is down 6.9% since the strike began.

To contact the reporter on this story: David Welch in Southfield at dwelch12@bloomberg.net

To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Chester Dawson, Melinda Grenier

©2019 Bloomberg L.P.