General Motors Corporation (GM) and the United Auto Workers (UAW) union reached a tentative contract on Wednesday, ending a two-day national strike by 73,000 workers with a groundbreaking deal that puts responsibility for retirees' health care into the union's hands. Union members were told to start reporting to work Wednesday. UAW officials said they hoped to begin talks with Ford and Chrysler before GM workers vote on ratifying the agreement. The deal allows GM to shift more than $50 billion of retiree health-care liabilities to an independent union-aligned trust. The health-care provision was considered a key requirement in closing the labor-cost gap between U.S. automakers and their foreign competitors. The two sides did not provide details of the agreement, but two people briefed on the contract told the Associated Press that it would give auto workers bonuses and lump-sum payments and would pay some newly hired workers at lower rates. The deal means UAW workers will head back to their jobs at about 80 GM facilities across the United States. The union declared a strike-the first national one against GM in 37 years-on Monday morning when negotiations broke down, ending GM's production and causing layoffs and shutdowns at parts factories. UAW President Ron Gettelfinger, speaking to reporters at the union's Detroit headquarters, said production at GM facilities would resume on Wednesday. He said the union expected to meet on Thursday or Friday with local unit presidents to discuss details of the four-year agreement to allow for local ratification meetings over the weekend. Ratification requires a majority vote of UAW members. “We fell very confident it will be ratified,” Gettelfinger said. GM said in a statement that the deal will make it significantly more competitive and provides “the basis for maintaining and strengthening its core manufacturing base in the United States.” The biggest U.S. automaker entered the negotiations seeking to reduce or erase what it said is about a $25-per-hour labor-cost disparity with its Japanese competitors. “This agreement helps us close the fundamental competitive gaps that exist in our business,” GM chief executive Rick Wagoner said.
