Labor contract talks at General Motors of Canada seemed likely to go down to the last minute as union leaders said that no progress had been made in the 24 hours since receiving a second proposal from the company. Fears of a strike lessened after GM officials presented what the Canadian Auto Workers union said was a significantly improved offer on Sunday, revising Friday's initial offer. Contracts with the 44,000 workers at the three largest Canadian car companies -- GM, Ford of Canada and DaimlerChrysler Canada -- will expire at midnight on Tuesday. If a deal is struck with GM, the union will name its second target company for negotiations. If no deal is reached, workers will hit the picket lines. In the United States, automaker contracts do not expire for another year. Vehicle and parts production in Canada and the United States are closely linked, so a Canadian strike would have a major impact across North America, according to Reuters.

Originally posted on Fleet Financials