The UAW labour union and General Motors have announced that they have come to a tentative agreement.

The UAW agreement with GM is seen as close to the package of wage increases agreed with Stellantis and Ford. Pay for veteran workers will rise by 33% and GM will give $2,500 in five payments to retirees through 2028.

GM has also agreed to a 25% wage increase for hourly workers along with cost-of-living allowances. Retirement benefits were said to be a final sticking point.

The UAW has officially suspended its strike against the Detroit Three, but ratification of agreement terms is still needed from UAW members.

Some analysts have warned that the concessions made by the automakers will leave them competitively worse off as they transition to more costly electric vehicles over the next five years.

After reaching a tentative agreement with Ford last week, the UAW struck a deal with Stellantis at the weekend – leaving GM as the only holdout. Since the middle of September, the UAW embarked on a strategy of staging selective strikes at different plants across the US, ratcheting up pressure on the Detroit automakers as negotiations continued.