GM to reopen talks with UAW this week

WASHINGTON (Reuters) - General Motors GM.N is set to resume negotiations with the United Auto Workers union this week and believes everything should be open for discussion, the company's chief executive said on Tuesday.

"I'm encouraged to reengage with the UAW at the bargaining table. I'm one of those people who believes that everything should be on the table" so long as it leads to GM's viability, Fritz Henderson told reporters after meeting with congressional officials.

GM, a recipient of $15 billion (9.96 billion pounds) in federal bailout funds, is up against a government-imposed June 1 deadline to cut debt, reach union concessions and restructure its operations or face likely bankruptcy.

Henderson said if GM were to seek Chapter 11 protection, like its rival Chrysler did last week, the matter would be handled as expeditiously as possible.

Chrysler hopes to step out of bankruptcy within 60 days.

Retiree health care and UAW concerns about GM's restructuring proposal, specifically about plans for overseas vehicle production, would be key topics for discussion with the UAW.

Henderson said the U.S. Treasury was continuing to review its business plan, which includes a proposed bond exchange to reduce $28 billion in debt.

GM said late on Tuesday in a regulatory filing that it is in talks with the Treasury to exchange at least 50 percent of its government debt for common stock.

GM shares gained 3 cents, or 1.65 percent, to close at $1.85 on the New York Stock Exchange.

(Reporting by John Crawley and Kim Dixon; Editing Bernard Orr)