According to Automotive News, according to people familiar with the costs of Ford, General Motors, and Stellantis (also known as the "Detroit Big Three"), a series of contract requirements proposed by the UAW will increase the labor costs of the Detroit Big Three by $45 billion to $80 billion annually and threaten their future viability.

　　It is reported that the UAW has proposed a series of contract requirements, including a 40% or more salary increase for its members, providing pensions for all workers, increasing medical benefits for retirees, and reducing working hours without reducing wages.

　　According to insiders, these requirements will nearly triple the labor costs of these three companies, with an hourly cost of over $150 per employee. Insiders also revealed that the $80 billion figure will include both working workers and retirees, as unions are seeking benefits for retirees.

　　Marick Masters, a business professor specializing in labor issues at Wayne State University, told Automotive News, "These costs will be unsustainable. At this level, they cannot maintain competitiveness

　　Currently, Ford, General Motors, and Stellantis are spending at least $64 per hour on wages and benefits for each worker, which is higher than the cost of approximately $55 per hour for foreign automakers using non union labor. It is worth mentioning that Tesla's hourly labor costs are even lower, ranging from $45 to $50 per hour.

　　The current labor cost data for Ford, General Motors, and Stellantis is calculated based on the number of active employees and consists of various expenses. However, not all expenses are included in employees' actual wages, including overtime pay, shift pay, profit sharing, and pension.

　　Image source: General Motors, Ford, Stellantis

　　Masters believes that this' astonishing 'cost increase could have catastrophic consequences. If the Detroit Big Three agree to sign this contract, it will be accused of poor management. You will find that investors are unwilling to support these companies. Investors may prevent anyone from investing in them and have them liquidate their assets

　　Although UAW Chairman Shawn Fain insists that the union sincerely hopes to achieve all the goals on its contract list, labor experts say this idea is not realistic. Art Wheaton, a labor expert at Cornell University, said, "We should have reservations about these ideas

　　General Motors stated in a statement last week that the UAW's requirements "will threaten our ability to make the right decisions for the long-term interests of the team". Stellantis submitted his own proposal to the UAW, which omitted the requirements of the UAW