DETROIT — The United Auto Workers said it informed General Motors that it would terminate its contract with the automaker at 11:59 p.m. Sunday, effectively setting a strike deadline for talks to reach a four-year agreement.
The Detroit-based company confirmed in a statement that it had received the deadline from the UAW, saying it was “working with them to address the issues and remain committed to obtaining an agreement that is good for employees and the business.”
The move follows the union’s agreement with Fiat Chrysler Automobiles NV that may add almost $2 billion in costs.
UAW President Dennis Williams has sought richer agreements with GM and Ford Motor Co. after first gaining the Fiat Chrysler deal, approved by a 3-to-1 margin announced Oct. 22. Union members at FCA got raises across the board, including increases for so-called Tier 2 employees that would eventually boost their maximum wage from about $19 an hour to the more than $29 rate of more senior members. The Fiat Chrysler pact will cost the company close to $2 billion over four years, people familiar with the matter have said.
