The United Auto Workers union has targeted General Motors as the first of the Detroit Big Three automakers for talks as the current four-year contract expires on 14 September.
Reuters said this year's contract round between the union and GM, Ford and Fiat Chrysler Automobiles was expected to be contentious as US new vehicle sales are slowing and automakers face rising costs associated with the development of electric vehicles and self-driving cars.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Rising healthcare costs, job security, profit sharing and the use of temporary workers are expected to be major sticking points, the news agency said.
Reuters noted GM in particular had been a target of union anger since announcing the closure of five North American plants late last year.
That move drew a wave of criticism, including from president Donald Trump who has repeatedly criticised GM for the move and last week said it should start moving its operations in China back to the US.
"We are prepared and we are all ready to stand up for our members, our communities and our manufacturing future," UAW president Gary Jones said in a statement cited by the news agency.
GM said in a statement: "We look forward to having constructive discussions with the UAW on reaching an agreement that builds a strong future for our employees and our business."
Reuters noted the contract talks come at a difficult time for the UAW as a federal corruption investigation into the union continues to grow.
