With a June 1 bankruptcy deadline looming, General Motors continues to negotiate with the United Auto Workers and its bondholders. An agreement with the UAW appears to be close. Behind the scenes, however, the Treasury Department is “for” the automaker. Hourly labor costs and retiree health care costs are critical to the outcome. Bondholders plan to argue in bankruptcy court that their rights are being ignored over those of the union. The federal government and the UAW are likely to be the majority owners of the new GM.