CAW, GM pick up negotiations

OTTAWA, May 18 (UPI) -- Union officials say General Motors and the Canadian Auto Workers resumed talks Monday, trying to cut employee costs so the company could get government help.

CBCNews.ca said the federal and provincial governments have told GM it would provide a $6 billion loan only if the company cuts costs. Union President Ken Lewenza said the talks have cut labor costs by $19 an hour per worker -- matching a deal at Chrysler -- but the company says costs have to be cut even more because of a $7 billion pension deficit.

A government-set deadline to reduce costs passed at midnight Friday, but the government has asked the two sides to keep negotiations going for a few days if they make progress, CBCNews said.