As American automakers stand poised to enter contract talks with the United Auto Workers union this fall, the industry's relationship with organized labor may be facing a total restructuring to the detriment of the workers.

General Motors, Chrysler, and Ford all want the UAW to agree to sizable concessions or deal with the consequences of the Big Three taking their operations to foreign countries. According to figures cited by experts in the industry, American companies must fight a wage disadvantage of $30 to $35 an hour with competitors like Honda and Toyota.

Ford, for instance, is seeking to cut labor costs by 30 percent. Currently the Big Three pay between $70 and $75 an hour. Approximately 210,000 members of the UAW are employed by the Detroit companies.

Achieving some degree of operational parity with Asian rivals is a must for the struggling U.S. auto sector. Ford lost a staggering $12.6 billion last year and was forced to slash more than 27,000 jobs at its factories through buyout offers to UAW members. Taken as a whole, the Big Three have restructuring plans in place that would eliminate as many as 80,000 factory positions.

For the past 70 years the UAW has enjoyed the upper hand in its negotiations with the Detroit auto giants, but the call for unprecedented labor concessions in the areas of wages, health care, and pension plans will surely bring about tense negotiations and a potentially crippling showdown between the two sides. It is even possible that a strike could result if no accord can be reached.