NEW YORK (CNNMoney.com) - Talks between General Motors Corp., its bankrupt former parts unit Delphi Corp. and the United Auto Workers union have hit a snag in recent days, according to a published report Thursday.

The Wall Street Journal reported that talks have stumbled on concerns that Delphi workers won't agree to transfer to open positions at GM more than 50 miles from their homes, and instead would rather receive pay guarantees from GM while not working.

The talks are seen as a key to GM's efforts to avoid a bankruptcy filing of its own and return to profitability. GM has said it could be on the hook for as much as $12 billion in contract obligations to its former employees at Delphi as the auto parts maker demands deep pay and benefit cuts from the union.

Delphi has threatened to ask the bankruptcy court to void current labor deals without an agreement on concessions, a move that could spark a strike and cripple production at GM. The talks are also seen as a key to other discussions between GM and the union over the company's plans to close a dozen plants and facilities, and cut 30,000 hourly jobs, despite contract guarantees for its current workers.

The paper reported that UAW Vice President Richard Shoemaker said Tuesday that talks have made little progress, and that a long strike is unavoidable if Delphi tries to throw out the current union contract.

GM spokesman Jerry Dubrowski told the paper that talks continue, and that GM continues to hope a deal can be reached that makes sense for the automaker and keeps Delphi a viable supplier.

A spokesman for Delphi declined to comment to the paper.

For Fortune's in-depth look at the problems facing GM, click here.