By David Shepardson

(Reuters) – Normal Motors (NYSE:) mentioned Friday it plans to spice up employment subsequent 12 months regardless of issues raised by autoworkers that the shift to electrical automobiles will scale back labor wants.

GM, Ford Motor (NYSE:) and Chrysler-parent Stellantis final month opened contract talks with the United Auto Employees (UAW) union forward of the Sept. 14 expiration of the present four-year labor offers.

GM manufacturing chief, Gerald Johnson, mentioned on Friday he didn’t agree it might want fewer staff for EV manufacturing.

“We truly count on our employment numbers to develop in 2024,” Johnson mentioned in a video message.

Final 12 months, Ford mentioned EVs, that are less complicated and have fewer mechanical components, would require 40% much less labor to construct than present inside combustion engine (ICE (NYSE:)) automobiles. GM has vowed to finish the sale of latest ICE automobiles by 2035.

One other key challenge within the talks entails pay and remedy of staff at GM’s three way partnership battery vegetation.

Individually, CFRA Analysis on Friday downgraded GM on issues a few doable strike after the UAW sought massive pay and profit hikes. GM shares closed down 1% to $36.57.

Stellantis mentioned on Friday it intends “to pretty reward our represented workers for his or her contributions to the success of the Firm. Nonetheless, it is going to be crucial to search out frequent floor that doesn’t jeopardize our capability to proceed investing.”

The UAW is looking for a pay hike of greater than 40% over the lifetime of the four-year contract, together with an preliminary 20% hike upon ratification and 5% annual wage hikes beginning in September 2024, in accordance with sources and a replica of the proposal.

GM mentioned on Thursday the UAW proposals “would threaten our capability to do what’s proper for the long-term advantage of the staff.”

The union is looking for substantial wage and profit modifications, together with defined-benefit pensions for all staff and shorter work weeks.

It desires to make all short-term staff at U.S. automakers everlasting, a considerable improve in paid day off and restore retiree well being care advantages and price of residing changes. The UAW desires new limits on short-term staff and for them to obtain revenue sharing.

UAW President Shawn Fain on Tuesday expressed help for a 32-hour work week, down from the standard 40 hours.

Sources mentioned the union desires the businesses to comply with the equal of a paid day-off per week, at a time of rising trials globally of a four-day working week.