In its contract negotiations with the UAW, GM has reportedly presented two proposals to the union concerning health.

The Wall Street Journal reported that one proposal calls for the creation of a healthcare trust. The widely mooted idea of a trust, like the one at Goodyear, would be funded by a mixture of cash, debt and possibly stock. It would be administered by the UAW.

A second option excludes a trust but calls for much deeper cuts in several areas.

Negotiations on a new labour deal could go past the Friday expiration of the current contract according to sources.