Auto Knight

GM And Canadian Auto Workers Avert Strike

by Darren

General Motors (NYSE:GM) and The Canadian Auto Workers have reached a tentative settlement.

The labor union said they’ll announce details of the new accord at a press conference scheduled for Noon Eastern Standard Time in Toronto.

The CAW represents approximately 10,000 workers who will vote on the agreement Tuesday and Wednesday of this week.

As part of the new deal, the CAW vowed to help GM cut costs that it needs to as part of an arrangement with the government.

GM stock is currently selling for $1.45 a share on concerns that the company won’t be able to continue as a “going concern.” The company has already received billions of dollars in government funds and is currently seeking more.

GM has announced a decline in sales, cuts to production, and massive layoffs as part of a restructuring they’re attempting to “stay alive.”