Not that it should come as a major shock to anyone paying attention over the last few weeks, but in a regulatory filing submitted by General Motors on Tuesday, the beleaguered automaker has admitted that it's unlikely to have acceptable deals negotiated with the either the United Auto Workers or Canadian Auto Workers unions before the previously announced deadline of May 27.
Equally as unsurprising are rumors that GM's plan to begin importing 50,000+ cars from China by 2014 is one of the major stumbling blocks in UAW negotiations. Other sticking points surely include how best to slash the desired $1 billion in annual labor costs that the two parties reportedly targeted and how to fund the Voluntary Employees Beneficiary Association (VEBA) health care trust.
Furthermore, the Detroit Free Press is reporting that CAW union leaders are upset at the way they are being treated in negotiations. A flier passed out to Canadian union workers had this to say:
"Because the Canadian and U.S. governments are planning a joint effort to support GM's restructuring, we now face a dangerous attempt to enforce a 'cookie-cutter' approach on our bargaining. This philosophy is absolutely offensive to us as Canadians."More than ever before, it seems almost a foregone conclusion that GM will file for bankruptcy on June 1st. Hold on tight, this promises to be a wild ride.
[Source: Detroit Free Press | Image: Bill Pugliano/Getty]