GM holds talks with UAW on comprehensive labor savings agreement

CHICAGO, May 20 (Xinhua) -- The authorities of the biggest U.S. auto maker General Motors Corp is holding another round of talks with the United Auto Workers (UAW) at the U.S. Treasury Department Wednesday in an effort to reach a comprehensive labor savings agreement ahead of a June 1 government deadline.

According to Detroit News report, the talks include representatives of the Obama auto task force, along with GM President and CEO Fritz Henderson and UAW President Ron Gettelfinger.

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 U.S. dollars 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 U.S. dollars the UAW is owed for a trust fund that takes over retiree health care benefits next year.

GM also must finalize its deal to swap about 10 billion U.S. dollars of what it owes the U.S. Treasury Department for at least 51 percent of its common stock.