GM, Canadian Worker Deal Unlikely Today, Union Leader Says

[Omaha Steve]

Source: Bloomberg

By Frederic Tomesco

General Motors Corp. and the Canadian Auto Workers probably will have to wait at least another day before agreeing on a new labor contract, union President Ken Lewenza said.

Canada’s federal government and its Ontario counterpart had given GM and the CAW until midnight New York time Friday to reach a deal that would cut costs and lower the risk of liquidation of the automaker’s operations in Canada. Lewenza said today government officials have told both sides they would be willing to wait a few more days for an accord as long as the negotiations progress.

“I have a gut feeling that there doesn’t seem to be a sense of urgency to get a deal done today,” Lewenza said in a telephone interview from Toronto. “It’s a complicated process. We are just not talking about the needs of two parties.”

GM’s Canadian negotiations take place as the company operates on $15.4 billion in U.S. Treasury funds. The carmaker is working to shave operating costs and shrink debt and union-retiree obligations by $44 billion in advance of a U.S. government-imposed June 1 bankruptcy deadline.


Read more: http://www.bloomberg.com/apps/news?pid=20601082&sid=aCcDndWm478g&refer=canada

[Joanne98]

1. Bloomberg trying to blame the unions. It's to late. We know about the CDS's.