UAW says GM talks to intensify as jobs issue looms

By Kevin Krolicki

DETROIT (Reuters) - The United Auto Workers union expects a crucial round of restructuring talks with General Motors Corp "to intensify this coming week" ahead of an end-of-May deadline set by the Obama administration.

In an e-mail message sent to rank-and-file workers, the union also repeated its opposition to GM's plans to close 16 U.S. manufacturing plants and cut about 21,000 jobs while also planning to increase vehicle imports from GM plants in lower-wage economies such as Mexico, South Korea and China.

"The UAW is actively involved in these complex negotiations, which involve the Obama auto task force, GM management, bondholders and secured lenders, dealers, parts suppliers and other stakeholders," the union said in the message. "These negotiations will have a major impact on wages, benefits and jobs for active and retired UAW members.

"We are expecting the restructuring negotiations to intensify this coming week,"

The unusual email message to UAW-represented workers comes as UAW President Ron Gettelfinger and GM Chief Executive Fritz Henderson are both due in Washington on Monday for talks with U.S. officials.

Those discussions have a growing urgency because GM faces a deadline to restructure its debt, including healthcare-related obligations to the UAW, by the end of the month ahead of a bankruptcy filing that the automaker says is now probable.

GM has a $1 billion bond payment due June 1 and must complete debt restructuring talks by then or file for bankruptcy, executives have said.

GM has been kept in operation since the start of the year with more than $15 billion in federal loans and would be majority owned by the U.S. government under the terms of the reorganization it has proposed to the Obama administration.