UAW and Ford Reach Tentative Agreement, Signaling End to 6-Week Strike

Detroit (AP) – The United Auto Workers union and Ford have agreed in principle to the terms of a tentative agreement that could signal the end to the nearly six-week strike with the Big Three automaker, sources with knowledge of the discussions confirmed Wednesday to CNBC.

A tentative agreement could be announced as early as Wednesday night, pending approval of UAW leaders, according to two sources, who agreed to speak on the condition of anonymity because of the sensitive nature of the talks.

The UAW made a counter-offer to Ford that proposes a 25% general wage increase over the life of a new four-year contract and said that negotiations on Tuesday extended well into Wednesday morning. The cost-of-living pay increases could lift the total pay raises above 30%, according to the sources.

The strike began on September 16th and has cost the Detroit automakers an estimated $2 billion in lost production. The strike has also had a ripple effect on other industries, including suppliers and dealerships, as well as the local economy.

The agreement with Ford could be a major step towards ending the strike, as the UAW has already reached tentative agreements with General Motors and Fiat Chrysler. The union will now need to ratify the agreements with all three automakers before the strike can officially end.