Detroit's Big Three - General Motors, Ford and Jeep maker Stellantis - have had a bit of a headache lately as they negotiate a new four-year contract with the union.。

In negotiations with the three car companies, the union demanded a total of 46 per cent pay increases in a new four-year contract, including an immediate 20 per cent increase.。Other conditions include a defined benefit pension for all workers, a 32-hour work week and additional living expenses.。

Automakers say companies need money to support car electrification transition。Auto executives worry that a sharp rise in labor costs will put them at a disadvantage in competition with other automakers such as Tesla。A Wells Fargo analyst estimates that if all of the UAW's requirements are passed, the average hourly labor cost for the Detroit Big Three will soar from about $66 an hour to $136 an hour.。

Union leaders and ordinary workers say the costs involved in the transition to electric vehicles are no excuse to withhold workers "pay increases.。Its workers deserve more cash because of high inflation, workers' jobs during the pandemic, and concessions made in past negotiations to help automakers weather the dark times。

On August 25, the United Auto Workers (UAW), which represents workers at the three automakers, said it would organize workers to go on strike if it fails to agree on the terms of a new contract agreement before the current contract agreement expires (i.e., September 14, local time).。Of the union's nearly 150,000 members, 97% voted in favor of authorizing the strike.。

UAW chairman Shawn Fain said on his social software: "We want to make a deal.。We're ready to make a deal。But it has to be an agreement that respects our sacrifices and contributions。He said that if no agreement was reached, strikes would be held within all three manufacturers.。

Last week, the Big Three also offered their terms。

Ford said the company agreed to a 9% pay raise over the next four years and a 6% pay lump sum.。Ford then raised the raise to 10 percent and paid it in a lump sum。GM says it will offer workers a 10 percent raise and make two more 3 percent lump-sum payments each year for four years.。While Strantis said the company agreed to a 14-year pay rise over four years..5%, but does not provide a one-time payment。

At present, the three car companies will be the minimum wage level of temporary workers has been basically the same。Among them, Strantis will increase the minimum wage for temporary workers by 4 per hour..$22, to $20 an hour, and cut the time it takes for non-casual workers to reach maximum pay from eight to six years。In addition, the three automakers agreed to provide inflation protection。Strantis will offer $10,500 in inflation protection over four years, $11,000 for General Motors and $12,000 for Ford.。

"This is a responsibly strong offer that positions us to continue to deliver good jobs for our employees today and the next generation in America."。In a letter to employees, Strantis North America chief operating officer Mark Stewart said it "also protects the company's ability to continue to compete globally in the future in an industry that is rapidly transitioning to electric vehicles."。"

Although all three companies offer salary increase options, they are far below the union's demands。UAW chairman Fain called the proposals an insult to them.。Fain noted that automakers' profits have risen sharply since the last wage deal in 2019.。This, coupled with the recent release of pent-up demand in the auto market during the epidemic, has also benefited these automakers, making them fully affordable for union demands。

Regulatory filings show that from 2020 to June 30, 2023, GM, Ford and Strantis had combined operating profits in North America of more than $100 billion.。than before 3..Increased by more than 15% over a five-year period。

For now, union talks with three manufacturers have stalled。

If an agreement is not reached and eventually leads to a strike, the U.S. auto industry chain will suffer significantly。

According to a study by consulting firm Deloitte, the automotive industry will account for about 7 percent of the manufacturing value added to the U.S. economy as of 2020.。On the employment front, data from the Alliance for Automotive Innovation shows that automotive manufacturing provides 9.7 million jobs, or about 5 percent of U.S. private sector employment.。

JPMorgan Chase said the Detroit Big Three, which are facing the impact of the strike, account for about 40 percent of new U.S. light vehicle sales。In the event of a strike, IHS Markit estimates that the shutdown of the three major automakers will cause about 75% of North American car production to be disrupted.。And Sam Fiorani, vice president of global automotive forecasting at AutoForecast Solutions, said a month-long strike by the big three automakers could cut production by as many as 500,000 vehicles.。By comparison, U.S. light vehicle sales were about 1.3 million in August, according to Wards Intelligence.。

The interruption of production will have varying degrees of impact on the upstream and downstream of the automotive industry chain.。Anderson Economic Group estimates that a 10-day UAW strike could cost automakers, suppliers, dealers and workers more than $5 billion.。

Deutsche Bank research analysts said the week-long strike could cut Ford's earnings by about 5 percent..$500 million, GM's earnings may be reduced by about 4.$800 million, Strantis profit could be cut by about $400 million。

The UAW has 8.$2.5 billion strike fund to help cover lost wages for members during strike。Analysts estimate the amount is enough to pay for about two months of strikes by the Big Three automakers.。

The last major strike in the U.S. auto industry dates back to 2019, when the UAW staged a 42-day strike against GM that culminated in a new contract, the longest such strike since 1976.。For the year, GM recorded a pre-tax loss of $3.6 billion.。Anderson Economics estimates that the shutdown at the time cost workers nearly $1 billion in lost wages。