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GM, Delphi deals bring UAW talks to an end

DETROIT, Sept 18 (Reuters) - The United Auto Workers and General Motors Corp. announced a tentative labor deal on Thursday, completing negotiations with the Big Three automakers that analysts say offer more peace than prosperity for Detroit's auto industry.

The UAW also struck a deal on Thursday with GM's former unit and its largest auto parts supplier, Delphi Corp. , which had been a sticking point in the GM negotiations.

The deals end days of intense negotiations after the union had reached pacts with DaimlerChrysler's Chrysler arm, Ford Motor Co. and its largest parts supplier Visteon Corp. earlier this week.

"In the last five days, we have successfully concluded negotiations with five of the largest manufacturers in the world," UAW President Ron Gettelfinger said at a news conference on Thursday. "That's five in five. What they do and how they do it basically touches everyone worldwide in one way or another."

The contracts with the five industrial giants, subject to rank-and-file approval, cover about 760,000 active and retired workers and their spouses. The previous contracts expired at midnight on Sunday.

The agreements, concluded in a difficult environment for the U.S. auto industry, call for the closure or sale of more than a dozen U.S. plants and thousands of job cuts. But the union won moderate gains in wages and benefits, according to a summary of the Chrysler contract, which is expected to mirror financial terms for the GM and Ford contracts.

"I think the companies are coming out of it with a contract they can live with, but not with any major reductions in their employment costs," said analyst David Healy of Burnham Securities.

Although GM spun off Delphi several years ago, Delphi was still included in GM's negotiations with the UAW this year.

GM shares fell 9 cents to $41.60 in early trade on the New York Stock Exchange, while Delphi dropped 3 cents to $9.63. Shares of Ford, DaimlerChrysler and Visteon were also mostly unchanged.