Detroit, Michigan - The United Auto Workers (UAW) union is reportedly making significant progress towards a tentative contract agreement with Ford that could potentially bring an end to the six-week-old strikes against Detroit's major automakers, according to sources familiar with the ongoing negotiations.

The sources, who spoke on the condition of anonymity, revealed that the UAW has presented a counter-offer to Ford, proposing a 25% general wage increase over the life of a new four-year contract. This figure surpasses the 23% pay increases previously offered by Ford, Stellantis, and General Motors. Moreover, the UAW's counter-offer also includes cost-of-living pay increases, potentially raising the total pay raises to above 30%. It is important to note that workers would still receive annual profit-sharing checks.

While the negotiations are still ongoing and there is a possibility of them unraveling, reaching a tentative agreement with Ford would serve as a model for contract settlements with GM and Stellantis. Historically, a UAW deal with one automaker has led to similar settlements for the other companies. Signs of progress have also emerged in the union's talks with GM, although it remains unclear if any of the automakers have accepted the UAW's proposed 25% pay increase over four years.

This week, the UAW escalated their strike strategy by walking out at three factories responsible for producing highly profitable pickup trucks and SUVs. The addition of these plants to the list of those on strike aims to intensify pressure on the automakers. On Tuesday, approximately 5,000 workers at GM's assembly plant in Arlington, Texas, joined the strike, resulting in the halt of production for truck-based SUVs, which are significant profit generators for the company. The day before, UAW President Shawn Fain added 6,800 employees at Stellantis' Ram pickup plant in Sterling Heights, Michigan, to the strike.

Since its commencement on September 15th, the strike has seen around 46,000 workers from the three companies walking out in targeted strikes, representing approximately 32% of the UAW's 146,000 members. The automakers have been forced to lay off workers at other plants due to parts shortages, which have cascaded throughout their manufacturing systems.

Todd Dunn, president of the UAW local at Ford's Kentucky Truck Plant, expressed optimism, stating that he has been informed by union leadership that an agreement with the company is nearing. Dunn believes that the strike at his plant has pushed Ford to progress in the negotiations and may result in the most favorable contract he has seen in his 29 years with the company.

Neither the companies nor the union provided any official comments on the ongoing talks. The UAW's counter-offer of a 25% wage increase over four years was reported by Bloomberg News and Automotive News.

Marick Masters, a business professor at Wayne State University, commented on the negotiations, stating that it is not surprising for the union to be close to an agreement at this stage. He believes that the UAW strategically added these plants to the strike action, anticipating that a deal was already within reach. Masters notes that concessions by the companies have been moving closer to the union's demands, resulting in smaller shifts in positions.

The bargaining process initially commenced in July, with the UAW seeking 40% pay raises over four years and the restoration of cost-of-living raises, which were forgone by the union in 2009 to support the automakers during the aftermath of the Great Recession. Other key issues include the restoration of traditional defined-benefit pension plans for workers hired after 2007, an end to varying tiers of wages, pension increases for retirees, and additional benefits.

A pivotal matter in the negotiations relates to the extension of the national UAW contract to 11 U.S. electric vehicle battery factories. This move would guarantee union representation for workers at these facilities. While GM has agreed to this proposal, the other companies have raised concerns, stating that their joint venture partners must also concur.

The representation of the union at the battery factories is crucial as it will be essential in securing future employment for workers, particularly as the industry shifts away from gasoline vehicles. As plants producing engines and transmissions are phased out, workers will require opportunities in these battery factories.

The recent progress in contract talks comes after Ford executives indicated in previous weeks that their offers, exceeding those of their competitors, had reached the limits of the company's willingness to pay. The three automakers have maintained their stance against absorbing labor costs that could result in price increases for their vehicles, making them less competitive compared to nonunion companies like Tesla and Toyota.

UAW President Shawn Fain argues that the automakers' substantial profits justify higher wages for workers.