UAW: Talks With GM Must Accelerate Or Deadline Is Needed

DETROIT -(Dow Jones)- The United Auto Workers union sent a note to its local officials throughout the country Monday saying its negotiations with General Motors Corp. (GM) "must accelerate in an expeditious manner or we will be forced to establish a firm deadline."

The UAW has been locked in marathon negotiations with the No.1 U.S. auto maker since naming GM its "strike target" on Thursday. The two sides resumed negotiations Tuesday morning after taking a break Monday night. The UAW's contract with GM expired Friday at about midnight, and the union has been extending the contract on an hour-by-hour basis since then.

In its letter to UAW officials, obtained Tuesday by Dow Jones, the union said "we have made progress in many areas of the discussions with GM but there are several major issues separating the parties that must be resolved."

GM spokesman Dan Flores declined to comment on the letter. UAW officials in Detroit could not be reached for comment. UAW officials at GM plants in the U.S. confirmed Tuesday that they received the letter.

If the UAW sets a firm deadline for a new contract, it likely raises the possibility that a strike would occur if the two sides cannot agree on terms. A UAW official, declining to be named given the private nature of negotiations, said Tuesday that the UAW is calling its local units at GM plants to make sure they remain ready for a strike at a moment's notice.