Contract talks between the United Auto Workers union and General Motors began in Detroit on Monday with the traditional handshake ceremony.

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A similar event at Ford is scheduled for Monday afternoon in Dearborn.


Talks with Chrysler began on Friday ahead of the ending of the current national contract between all three US-based car makers and the UAW on 14 September.


Wage reductions, healthcare and retiree benefits are all on the agenda as the domestic Big Three battle to compete with Asian-owned rivals whose US plants are mostly non-union and have far fewer retirees.


Analysts told the Associated Press that Ford is likely to ask for deeper concessions than its two US rivals, perhaps even temporary wage cuts.


All three have said they need labour cost parity with the Japanese, who make about $US2,000 per car more in profits. Detroit automakers claim their hourly labour costs are about $25 higher than the major Japanese firms when those healthcare, retiree and other costs are factored in, AP added.

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