AutoBeta(AutoBeta.net)10/26 Report--

According to the latest foreign media reports, the United Auto Workers Union (UAW) approved a new four-year labor contract with General Motors. The approval of the agreement ended a 40-day strike at UAW, which cost GM more than $2 billion (14.1 billion yuan).

Negotiations between General Motors and trade unions broke down in September, causing nearly 50,000 workers across the United States to go on strike. General Motors is trying to cut costs ahead of the expected recession in the U. S. auto industry, with plans to close two parts plants and two vehicle plants this year and cut costs. While unions demanded higher pay, more job security and better benefits, the strike brought GM plants in the United States to a standstill. It will be GM's first national strike since 2007 and the largest in the United States in 12 years.

Mary Barra, GM's chief executive and chairman, said in a statement that the agreement recognized that the company's employees "have made an important contribution to the overall success of the company, bringing substantial wages and benefits to the company and increasing investment and employment opportunities in the US business." It is understood that employees involved in the strike are expected to return to work as early as Saturday to make up for lost production.

As part of the deal, union members received salary increases or one-off bonuses of 3 to 4 per cent a year, while UAW agreed not to block GM's plans to close four US plants.

GM also agreed to invest $7.7 billion in existing plants, create thousands of new jobs and shorten the time it takes for workers to reach a maximum wage of $32 an hour.

Foreign media said that the strike caused GM more than $2 billion in losses. For now, the union says it will negotiate with Ford next, followed by Fiat Chrysler.

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