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GM, UAW propose tentative 4-year labor deal

The United Auto Workers and General Motors Co. proposed a new four-year labor contract on Oct. 16 that will now pass to a broader swath of union members for approval, according to the union.

The UAW GM National Council will review the proposal on Oct. 17 and decide whether to continue the strike of more than 48,000 GM workers that began Sept. 16 when the two parties failed to reach a deal.

UAW spokesman Brian Rothenberg said no details about the agreement will be released until after the Oct. 17 council meeting. The UAW said in a statement the proposal represents "major" gains for union members.

GM on Oct. 16 also confirmed the proposed agreement and said additional details will be provided at an "appropriate time."

If the union council votes to approve the proposed deal, it will be passed to all of GM's UAW members for final approval.

On Oct. 15, GM Chairman and CEO Mary Barra and GM President Mark Reuss met with UAW officials at the bargaining table.

The weekslong strike caused a shortage of auto parts for GM in North America, prompting temporary layoffs of more than 10,000 non-UAW workers, according to CNBC.

The Center for Automotive Research said the strike has cost GM approximately $450 million a week and the UAW about $12 million a week from strike pay costs. On Oct. 12, the UAW increased GM workers' weekly strike pay to $275 from $250. Other experts estimated losses from $50 million to $100 million per day of the strike for GM.