General Motors (GM) -) shares jumped higher Monday following reports that the carmaker has reached a tentative labor agreement with the United Autoworkers' Union, ending the last of the Big 3 strikes.
Reuters reported Monday that GM, the final holdout following weekend deals between Big 3 rivals Ford and Stellantis with the UAW, has reached an agreement that will see workers return to the job over the coming days.
UAW president Shawn Fain had called for new strike action against GM over the weekend, citing its "unnecessary and irresponsible refusal to come to a fair agreement” after reaching a tentative contract will Stellantis on Saturday.
The UAW added a plant in Spring Hill, Tennessee to the list of three facilities already hit by walkouts, after failing to reach an agreement in the wake of the Ford breakthrough.
Thew new action took the level of GM's U.S. production affected by disruption past the 50% mark, leaving it vulnerable to higher costs linked to the dispute after warning earlier this month the strikes were costing it around $200 million a week.
GM shares were marked 0.6% higher in early Monday trading to change hands at $27.38 each. Ford shares, which shed more than $4.3 billion in value during the duration of the UAW strikes, were marked 1% lower at $9.86 each. Stellantis was marked 0.05% lower in Milan.
- Action Alerts PLUS offers expert portfolio guidance to help you make informed investing decisions. Sign up now.
