Negotiations between GM and the UAW have broken down over concessions requested by the automaker to help them return to profitability and meet a Tuesday deadline to present a plan for viability to Congress. Automotive News reports:
 

At GM, the UAW negotiators walked away from the bargaining table because of differences over how to pay the health care costs of retirees. No high-level negotiations were underway as of Saturday afternoon, although some working-level discussions continued, the person familiar with the talks said.

“It doesn’t seem like the stakeholders are really prepared to give a whole lot,” said independent auto industry analyst Erich Merkle. “It’s a high stakes game of poker right now.”

According to the report, GM wants the UAW to accept $10 billion in newly issued stock in lieu of cash to fund a new employee healthcare fund that the union will administer under the terms of their last contract. GM is due to pay $20 billion in to that fund but wants the union to accept half that amount in cash and half in stock.

The union is apparently balking at the idea of accepting such a risk rather than actual cash, since they will be on the hook for providing healthcare for all autoworkers starting in 2010. If the value of that stock does not increase, that healthcare fund could very well end up failing, putting the health care benefits for workers at risk.

Update: It appears that the UAW has returned to the bargaining table. Both sides face a major deadline, as plans for restructuring have to be submitted to Congress by tomorrow and labor concessions are a major part of that plan.