GM, UAW work to complete cost-cutting labor deal

By Kevin Krolicki and Poornima Gupta

DETROIT (Reuters) - General Motors Corp and the United Auto Workers union on Sunday rushed to complete a cost-cutting labor deal that would allow the top U.S. automaker to cut itself free from a $50 billion retiree health-care burden.

Negotiators for both sides, who were meeting for the 20th consecutive day on Sunday in Detroit, stepped up the pace in a bid to complete a tentative contract, people briefed on progress in the talks said.

But the talks remained fluid and negotiations could spill into next week if the bargaining teams hit any snags, one person familiar with the talks said.

Harley Shaiken, a labor expert at the University of California-Berkeley, said UAW-GM bargainers were taking needed time to review an agreement expected to mark a major departure for the embattled U.S. auto industry.

"There's always last-minute things that can come up," Shaiken said. "This is a pivotal agreement for the future of the automobile industry and it could shape the future of U.S. manufacturing."

A contract would have to be ratified by GM's 73,000 UAW-represented workers.

The first step in that process would be for the union's leadership to brief the UAW's local leaders on the deal, something that could happen as soon as Monday, according to one of the sources, who asked not to be identified because of the private nature of the negotiations.

GM and the UAW have agreed to the broad terms of a deal that would reduce GM's nearly $5 billion annual health-care bill, people briefed on the talks said on Saturday.