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UPDATE 6-GM, UAW reach first labor deal since bankruptcy
September 17, 2011 / 1:40 AM / 6 years ago

UPDATE 6-GM, UAW reach first labor deal since bankruptcy

(Updates with confirmation contract reached)

* GM, UAW say contract includes new jobs, profit sharing

* Details withheld pending review by union members

* UAW talks still ongoing with Chrysler, Ford

DETROIT, Sept 16 (Reuters) - General Motors Co and the United Auto Workers union on Friday reached a proposed contract for almost 49,000 production workers that both sides said would create new U.S. factory jobs and include profit-sharing bonuses.

Details of the tentative contract were being withheld until the contract could be reviewed by UAW officials representing GM plants.

The proposed contract, which must be ratified by rank-and-file workers, represents the first since two Detroit automakers -- GM and Chrysler Group LLC -- were bailed out by U.S. taxpayers and exited bankruptcy partially owned by the U.S. government.

The UAW chose to complete negotiations for a new contract with GM first, before reaching a deal with Chrysler and finally with Ford Motor Co , those close to the talks have said.

Ford is the only major U.S. automaker that avoided a government bailout and funded its turnaround on its own.

The Detroit talks have played out at a time of increasing uncertainty about the strength of U.S. auto sales for the remainder of this year and in 2012, as well as concern about the risk of another recession. (Editing by Lisa Von Ahn, Andre Grenon and Steve Orlofsky)

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