Auto workers, GM still talking

The United Auto Workers union and General Motors Corp. remained locked in negotiations late Friday and agreed to keep talking past a midnight deadline to either clinch a deal or face a possible strike.

Local UAW leaders were told to keep the 73,000 members who work at the largest U.S. automaker ready for a possible strike.

GM and the UAW declined to comment on the progress of the talks.

The UAW on Thursday switched its tactics, singling out GM as its strike target.

Rival automakers Ford Motor Co. and privately held Chrysler have agreed to contract extensions with the UAW, clearing the way for their union-represented workers to continue working under the terms of their existing contracts even after the industrywide deal on wages and benefits expires.

Strike preparations were underway at GM plants across the U.S. after the UAW’s lead negotiator with GM, Cal Rapson, told members Thursday that the union needed to see some “serious movement soon.”

“Unless this happens, a strike might well be unavoidable,” he said in a note to UAW members.

A person familiar with the UAW’s position said the union was prepared to extend the contract with GM and continue talks into next week if there was progress on the central issue of healthcare costs.

The Detroit-based automakers lost more than $15 billion in 2006 and have cut more than 80,000 jobs through buyouts driven by plant closings. Given the industry’s weakness, analysts have viewed a strike as unlikely.