United Auto Workers President Shawn Fain (right) and UAW Secretary-Treasurer Margaret Mock (left) outside the Stellantis Ram 1500 plant in Sterling Heights, Michigan, on October 23, 2023, after the union called a strike at the plant. Lead the march.
Michael Weiland/CNBC
Detroit – United Auto Workers and Ford Sources familiar with the discussions confirmed to CNBC on Wednesday that a tentative deal could be close to ending a nearly six-week strike at the automaker.
The two sides engaged in intense negotiations on Tuesday and Wednesday to try to hammer out a record deal for Ford’s 57,000 union-represented workers, sources said. They agreed to speak on condition of anonymity due to the sensitivity of private negotiations.
One source said the situation remains fluid and recent progress in negotiations may not result in a tentative deal, but the two sides are closer than ever. The union could also walk away from the bargaining table with a better offer and have GM and Stellantis match it before agreeing to a tentative deal.
UAW members at Ford must approve any tentative agreement by a simple majority.
A spokesman for Ford, which has for weeks offered the best of Detroit’s three automakers, declined to comment on the talks, saying only that they were ongoing. A UAW spokesman did not respond for comment.
As first reported on Wednesday Associated Press reportthe two parties appear to be “close to reaching a tentative contract agreement.”
Two sources confirmed to CNBC that the latest talks involve a proposal for a pay increase of at least 25% over the life of the agreement, as well as other proposals to improve benefits previously outlined by the union and the company.
UAW vs. Ford and its crosstown rivals General Motors and star Negotiations have centered around the economics of the deal as the two sides failed to reach a new contract covering 146,000 autoworkers by a Sept. 14 deadline.
The union launched negotiations with all three automakers simultaneously, breaking recent history when UAW leaders bargained with each automaker individually, picking a major company to focus efforts on and then working out the remaining deals under the leading tentative agreement. .
However, a potential tentative agreement with Ford could be used as a template for negotiations with Stellantis and General Motors. This week, unions expanded strikes against the two automakers at major plants.
Ford reports third-quarter results after the market close on Thursday.
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