By Jeff Bennett Stock Market Quotes, Business News, Financial News from http://commodities-report.com
The United Auto Workers union notified General Motors Co. Saturday it will terminate its contract effective midnight Sunday, opening the possibility of a strike.
The move is a strategic tactic by the union to keep both sides focused on negotiations but it also suggests a new deal may be close at hand since GM and the union see a strike as a last resort.
UAW President Dennis Williams is looking to hammer out a quick deal that would cover GM’s approximate 51,000 union members following problems with Fiat Chrysler Automobiles NV.
Union members at Fiat Chrysler turned down the first tentative agreement forcing officials to return to the negotiating table. Workers approved a second deal on Thursday that provides significant pay increases over the next four years.
While using the Fiat Chrysler contract as a blueprint, Mr. Williams wants to wring a richer deal from GM given the auto maker’s stronger financial situation. The company posted a $3.1 billion third-quarter operating profit thanks in part to strong sales of pickup trucks and sport-utility vehicles in the U.S.
Mr. Williams will turn to Ford Motor Co. once the deal is ratified.
GM and Ford union members have been working under contract extensions since Sept. 14.
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