GM, UAW Reach Contract Deal

The changes include modifications to the labor agreement and to the Voluntary Employee Beneficiary Association retiree health care trust fund.
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The United Auto Workers says it has reached a tentative agreement with

General Motors

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and the U.S. Treasury on key changes to the union's 2007 contract.

The changes include modifications to the labor agreement and to the Voluntary Employee Beneficiary Association retiree health care trust fund, the union said. Details were not immediately available. The changes require membership approval.

VEBA funding and settlement with bondholders have been considered the principal barriers in GM's effort to restructure outside of bankruptcy before a June 1 deadline set by the Treasury.

At midday Thursday, GM shares were trading at $1.61, up 16 cents, while

Ford

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shares were trading at $5.25, down 17 cents.