Detroit - After approximately six weeks of targeted U.S. labor strikes, negotiators with the United Auto Workers (UAW) union and Stellantis have reached a tentative agreement, according to anonymous sources familiar with the talks. The terms of the deal, which are based on a 4½-year agreement reached with Ford Motor earlier this week, still need to be approved by UAW leadership before being publicly announced on Saturday.

The UAW plans to convene a meeting with local Stellantis union leaders on Saturday afternoon to discuss the tentative agreement, following the recent agreement reached with Ford. However, both agreements still require approval from union leaders and ratification by members. The deal with Stellantis is expected to put an end to the series of labor strikes that began after negotiations failed to yield new deals for the union's 146,000 members before the September 14 deadline.

Although the specific details of the agreement have not been disclosed, Bloomberg News reported that Stellantis made additional concessions to the UAW in order to finalize the deal. One notable aspect of the agreement is the inclusion of a new product for an idled assembly plant in Illinois, which is expected to boost job opportunities for union workers.

The strikes have taken a toll on the automotive industry, with GM, Ford, and Stellantis collectively losing billions of dollars in lost production. Ford disclosed that the strike cost them $1.3 billion, and if the agreement is ratified, labor costs per vehicle produced could increase by approximately $850 to $900. GM, on the other hand, estimated that the strike caused them a loss of around $800 million.

The negotiators' strategy during the talks broke from the norm, with the UAW simultaneously initiating negotiations with all three automakers. This departure from the usual process of bargaining individually with each company and pattern bargaining off a leading agreement shows the union's more confrontational approach this time around.

The proposed labor agreements are expected to have a significant impact on labor costs for the automakers. Analysts at Deutsche Bank have estimated that the agreement with Ford could lead to a cost increase of $6.2 billion over the agreement term, while cost increases are projected to be $7.2 billion for GM and $6.4 billion for Stellantis.

As the UAW prepares to announce the tentative agreement with Stellantis, negotiations with General Motors are set to resume on Saturday. Expectations are high for a successful outcome, which would further alleviate labor tensions in the automotive industry.

Both the UAW and Stellantis are eager to finalize the agreement and put an end to the strikes, ensuring a stable and productive future for their workforce. The final approval of the deal by union leaders and its ratification by UAW members will determine the extent of the agreement's impact on the industry and the long-term viability of the automakers involved.