Holden workers who agreed to a three-year pay-freeze deal will instead get a rise in less than a fortnight if the car maker does not commit to building two new models beyond 2016.
Australian Manufacturing Workers Union state secretary John Camillo says Holden's Adelaide workforce accepted a new pay deal in August to help save the company's Australian operations.
This was based on Holden committing to build its Cruze and Commodore models in Australia from 2016.
If the commitment is not made by November 15, the workers revert back to the 2011 collective agreement, Mr Camillo told AAP on Tuesday.
That agreement provides for a three per cent rise and potential bonuses.
If Holden makes the commitment, the workers will then lose the three per cent rise.
The government currently subsidises the industry by about $500 million a year but the new coalition regime has ordered the Productivity Commission to review the viability of the payments.
Holden's decision on the two cars would depend on the outcome of the report, which is not due until April or May despite calls by the SA government and others for a decision before Christmas.
Mr Camillo said workers were frustrated with the situation and had to put everything on hold as they did not know what the future would bring.
"They see the State and Federal politicians are just playing politics with their livelihood," he said.
Meanwhile, the Adelaide Advertiser has reported that, despite the uncertainty over future federal government funding, Holden will go ahead with the upgrade of its Elizabeth factory.
The upgrade is to prepare for production of the next generation of the Commodore in 2016.
The newspaper been told that Holden is spending $250,000 to make the changes to allow tooling for the new large, front-wheel drive sedan over December and January because it would be too costly to do so at a later date.
However, the Advertiser says industry insiders warn the upgrade is no guarantee that Holden's manufacturing future is safe.
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