Deal ends car workers' strike

A two-day strike by car workers across the US was set to end today after the United Auto Workers union said it had reached a tentative agreement with General Motors Corp.

The union said the deal was reached shortly after 3am (7am Irish Time) and that workers would be encouraged to go back to work immediately.

A person briefed on the contract said earlier that the historic agreement would shift the burden of retiree healthcare from GM to the union and give workers bonuses and lump-sum payments.

The person requested anonymity because the contract talks are private.

The contract must be reviewed by local union presidents and will then be subject to a vote of GM’s 73,000 rank-and-file members.

The agreement is expected to set a pattern for contracts at Ford Motor Co and Chrysler LLC.

The union said it went on strike largely because GM failed to make promises for future products and investment in US plants.

GM said it was disappointed and would work with the UAW to address its competitive challenges.

The strike has had an impact at non-UAW-represented GM plants and at suppliers.

Yesterday, GM stopped two car assembly lines employing about 5,600 people at its plant in Oshawa, Ontario.

On Monday, it halted a transmission plant in Windsor, Ontario, which employs 1,300. Workers at both are represented by the Canadian Auto Workers union.

Parts shortages forced GM to cancel one shift yesterday at an assembly plant in Moraine, Ohio, which makes sport utility vehicles.

The plant’s 2,300 workers are represented by the International Union of Electronic Workers-Communication Workers.

Delphi Corp, GM’s largest supplier, said yesterday that it was temporarily laying off workers.

Spokesman Lindsey Williams would not give numbers because the situation was in flux. Delphi has about 25 US plants that supply parts for GM.