GM In Tentative Restructuring Deal With Canadian Union

General Motors Corp. (GM) and the Canadian Auto Workers union have reached a tentative agreement on a concessionary labor deal, the latest step in the auto maker's efforts to slash costs and collect government aid in regions around the world.

Details of the deal, announced Sunday, weren't immediately available. The union plans to hold a news conference in Toronto later Sunday to discuss the deal.

Labor cost reductions are a condition of an agreement between GM and the Canadian government to give GM around $5 billion. GM, which said its cost structure in Canada is "unsustainable," would keep building vehicles in Canada under the deal.

GM's Canadian hourly work force of about 10,000 has lost its competitive edge to U.S. workers represented by United Auto Workers as the UAW has agreed to concessions that have reduced GM's labor cost in the U.S.

GM has said it needs at least $6 billion in aid from other governments this year in addition to up to $30 billion it's requesting from the U.S. Without the cash, GM said it could be forced into bankruptcy as soon as this spring.

-By Sharon Terlep, Dow Jones Newswires; [phone]; [e-mail]