TORONTO (Reuters) -- The Canadian Autoworkers union said a number of key issues remain unresolved as talks continue with embattled General Motors on a deal that will cut the automaker's costs.
A Saturday evening statement from the union said negotiators had made some progress. A government-imposed midnight deadline on Friday for an agreement to help make the company's Canadian operations viable passed overnight without a deal.
"Our CAW negotiating team continues to work hard to reach an agreement, CAW President Ken Lewenza said in the statement. "We will continue our talks as we work towards reaching a tentative agreement that we can bring back to our membership for ratification."
The CAW reached an initial deal with GM in March, but the Canadian government said that did not go far enough. It wants GM to get its total labor costs -- for active workers and for retirees -- in line with non-unionized plants that Toyota Motor Corp. operates in Canada in order to qualify for taxpayer-funded loans.
"The taxpayers of Canada cannot be expected to support the restructuring unless the restructuring will be successful, and that is going to require difficult decisions on the part of everyone," Prime Minister Stephen Harper said on Friday.
GM, which has been kept afloat with $15.4 billion in U.S. loans, burned through $10 billion in the first quarter. It has said bankruptcy by June 1 is probable as it tries to slash $27 billion in bond debt and also reach new agreements with U.S. workers.