GM, UAW hold third day of talks in D.C.

[billyoc]

Washington -- General Motors Corp. and the United Auto Workers are holding another round of talks at the Treasury Department Wednesday in an effort to reach a comprehensive labor savings agreement ahead of a June 1 government deadline.

The talks include representatives of the Obama auto task force, along with GM President and CEO Fritz Henderson and UAW President Ron Gettelfinger, who were in the capital for President Barack Obama's unveiling of new auto emission and efficiency standards Tuesday. Wednesday's talks are the third straight day of meetings at the Treasury Department, officials said. Also taking part in the talks is Cal Rapson, a UAW vice president.

No agreement is expected until later this week, at the earliest. GM wants to reach a deal before next Tuesday, when its bondholders, holding $27.2 billion in debt, must decide whether to exchange their bonds for 10 percent of GM's equity.

GM warned this week it may not complete the labor deal before its bondholder offer expires at 11:59 p.m. Tuesday. One major requirement is for GM and the UAW to finalize a deal to swap, for stock, at least half of the more than $20 billion the UAW is owed for a trust fund that takes over retiree health care benefits next year. The health care trust is a voluntary employee beneficiary association, also known as a VEBA.

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http://www.detnews.com/article/20090520/AUTO01/905200436/1148/rss25