Employees at three of America’s largest car manufacturers have initiated strike actions, according to their union.

Operations have come to a halt at plants belonging to General Motors, Ford, and Stellantis after labor contracts expired on Thursday.

The United Autoworkers Union claims that the companies failed to present acceptable offers.

This labor dispute poses a significant threat, potentially leading to higher prices for consumers and substantial disruptions for these automotive industry giants.

Shawn Fain, President of UAW, emphasized that it’s now the responsibility of the companies to resolve the conflict, stating, “When they start taking care of their workers, it will end.”

The strike commenced at midnight Eastern Time (04:00 GMT) at GM’s Wentzville, Missouri mid-size truck plant, Ford’s Bronco plant in Michigan, and Stellantis’s Jeep plant in Toledo, Ohio. These facilities play a crucial role in the production of some of the most profitable vehicles for the “Detroit Three.”

While some other facilities will continue to operate, the UAW has not ruled out expanding the strikes to additional targets beyond the initial three.

As the Thursday deadline approached, the White House disclosed that President Joe Biden had spoken with Mr. Fain about the negotiations but did not provide further details.

The UAW had demanded a 40% pay increase over four years for its approximately 140,000 members, citing a similar pay rise for company executives.

Additional demands included transitioning to a four-day workweek, reinstating automatic pay increases tied to inflation, and imposing stricter limits on the classification of workers as “temporary” staff without union benefits.

Ford countered that the UAW’s proposals would more than double its labor costs in the United States.

Last month, 97% of the union’s members voted in favor of authorizing a strike. Workers argue that, given years of record profits, the companies can afford to be more generous.

Paul Raczka, a worker at a Stellantis factory in Michigan, voiced his frustration, saying, “In my opinion, we are owed this.”

He highlighted that these jobs, which once offered good healthcare and secure pensions, no longer provide the same quality of life. Raczka added that he couldn’t even afford the car he helps manufacture and expressed discontent with CEOs earning over $20 million annually.

Jim Farley, Ford’s CEO, expressed hope for avoiding a strike but stressed that there were limits to what the company could concede, citing the need to safeguard the company’s sustainability.

Economists estimate that a 10-day strike could cost the three companies nearly $1 billion and workers almost $900 million in lost wages, potentially resulting in a total economic impact exceeding $5 billion.

Analysts note that the ongoing supply chain challenges in the automotive industry could exacerbate the situation, possibly leading to higher vehicle prices if the strike prolongs.

Ford, GM, and Stellantis collectively represent approximately 40% of US car sales, although their market share has decreased over the past 25 years due to foreign competitors like Toyota gaining ground.

The last major strike in the automotive industry occurred in 2019 when GM workers went on a six-week strike.

Jessie Kelly, a GM worker who participated in the 2019 strike, acknowledged the financial challenges ahead but expressed support for the current strike.

She emphasized the need for fair compensation, as rising prices and living expenses have outpaced her wage growth.

“At the end of the day, we all want to work for a corporation that is making good money. We just want our fair share of that,” Kelly said. “The CEOs are gonna keep paying themselves more and more money, and we’re the only ones being left behind.”