On Thursday, the 17th of October 2019, following days of tentative talks between GM’s Management board alongside UAW, the workers’ union representing 48,000 hourly workers of the leading US automaker, both parties had finalized an accord for a four-year contract for the striking workers, while the deal would include a better pay-off alongside a better health insurance coverage, however, the deal also had allowed the Detroit-based carmaker to go-ahead with its earlier plan to shut down three plants in the North America, the workers’ union said on Thursday (October 17th).
In point of fact, latest development over the GM strikes on US plants came forth a day after sources familiar with the talks had unveiled that the two side had been nearing a deal in a bid to put an end to a month-long strike, which shrugged off almost $2 billion from the Detroit-based No.
1 carmaker in the United States. Nonetheless, the GM's striking workers would have a week or up to October 25th, to decide whether to sign a new four-year contract under the terms UAW Union broguht forth for them. Aside from that, following reveal of the news that the GM deal with its hourly workers came at the expense of closing down three of its North American plants, General Motor share fell more than 2 per cent in the extended trading to $36 a share after ending the day 1.26 per cent lower to $36.19.
While a broader Wall St. reaction to the latest GM deal had yet to be seen, an RBC capital market analyst, Joseph Spak wrote in a client note on Thursday (October 17th), “We continue to believe that if this is ratified, it is a fairly solid outcome for GM. The financial implications of the deal don’t look too onerous. ”