Shares of General Motors Co. (GM, -0.13%) bounced 1.2% off a 3 1/2-year low in morning trading Monday, following a report from CNBC that the automaker has reached a tentative deal with the United Auto Workers (UAW) to end the six-week long labor strike.
Wider Impact on the Industry
In recent developments, the UAW expanded its strike against GM after reaching an agreement with fellow Big 3 automaker Stellantis N.V. (STLA, +1.44%) and just a week after Ford Motor Co. (F, -1.56%) also settled a deal.
Key Terms of the Agreement
According to CNBC, the UAW’s 4 1/2-year agreement with GM includes several significant provisions. Notably, it entails a 25% wage increase and a 68% increase in starting hourly wages, which will now stand at $28 an hour.
Response and Conclusion
At the time of reporting, the UAW had not provided any comment on the matter. General Motors’ stock closed on Friday at its lowest price since August 7, 2020, having experienced a substantial decline of 28.1% over the past three months. In comparison, the broader S&P 500 index (SPX, +1.02%) has only dropped 9.2% during the same period.