GM, UAW reach first labor deal since bankruptcy
Updated: 2011-09-17 13:12
DETROIT - General Motors Co and the United Auto Workers union on Friday reached a proposed contract for almost 49,000 production workers that both sides said would create new US factory jobs and include profit-sharing bonuses.
The proposed contract, which must be ratified by rank-and-file workers, represents the first since two Detroit automakers -- GM and Chrysler Group LLC -- were bailed out by US taxpayers and exited bankruptcy partially owned by the US government.
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 US automaker that avoided a government bailout and funded its turnaround on its own.
The Detroit talks have played out at a time of increasing uncertainty about the strength of US auto sales for the remainder of this year and in 2012, as well as concern about the risk of another recession.