UAW contract negotiators met at Ford World Headquarters in Dearborn on Thursday afternoon to discuss a counter-proposal and Ford put a better offer on the table, the Detroit Free Press has learned.

Improvements to the original proposal focused on "key economic" areas: Wages, COLA (cost-of-living adjustments) and contract ratification bonuses, people familiar with the talks said.

UAW President Shawn Fain went to Ford on Thursday to join the discussion. He was planning to spend time this week and next at Ford, a union source confirmed to the Free Press. The situation is "obviously very fluid," said the source, who isn't authorized to speak publicly on the talks.

Ford is working to reach a deal before the 11:59 p.m. Sept. 14 deadline with the United Automobile, Aerospace and Agricultural Implement Workers of America, known universally as the United Auto Workers, under intense pressure to avoid a labor strike.

The initial proposal Ford put forth Aug. 29 and first discussed publicly by the UAW Aug. 31 included:

• A 5% general wage increase the first year

• A 3% performance bonus lump sum the second year

• A 4% general wage increase the third year

• A 3% performance bonus lump sum the fourth year of a four-year contract.

• A cost-of-living adjustment bonus of $6,000 the first year and $2,000 each year of the contract after that for a total of $12,000.

• A $5,500 ratification bonus, which would go to both permanent and temporary employees for the first time ever.

Fain said during a Facebook live member update Aug. 31 that the Ford proposal "insults our very worth."

In recent days, negotiators have begun arriving at Ford in Dearborn as early as 6 a.m. and stay sometimes as late as 8 p.m., sources with knowledge of the situation told the Detroit Free Press. Members of the UAW bargaining team, led by UAW Vice President Chuck Browning, are easily noticed in their red union shirts, gathered in subcommittees on the second floor of the Glass House.

Meanwhile, Ford CEO Jim Farley and Executive Chair Bill Ford are directly involved in strategy updates, impromptu meetings, scheduled briefings and text streams throughout the day and night, a source with firsthand knowledge but not authorized to discuss publicly told the Free Press.

The 120-year-old automaker sees itself as more invested in hourly workers than competitors since Ford employs more hourly workers in the U.S. than General Motors or Stellantis, which builds Jeep and Ram and Dodge and Chrysler vehicles.

GM and Stellantis do save money on labor by building significantly more trucks and SUVs in Mexico. But Ford executives have said employing American labor is part of the company's commitment to America and its communities. Ford builds the Mustang Mach-E and Maverick in Mexico but far fewer vehicles than competitors. All bestselling F-Series trucks are built in the U.S. and an estimated 80% of its vehicles overall are sold stateside, Ford emphasizes often.

Now the company is running TV ads to reinforce its messages. Ford has implemented promotions before it was required to do so by contract, like promoting 3,000 temporary workers to fulltime in 2022 when no one was talking about a strike.

“Ford has bet on the UAW more than any other company. That’s just a fact. That’s our values as an American company," Mark Truby, Ford chief communications officer, told the Free Press. "We do things the right way. So we will work around the clock to try to reach a deal that works for our employees, who deserve a good quality of life, but also allows Ford to invest and grow.” 

Meanwhile, the UAW reported GM and Stellantis to the National Labor Relations Board on Aug. 31 for bad faith negotiating. And when GM submitted its proposal Thursday, Fain called it "insulting."

Ford hopes its UAW track record and a sweeter contract deal will pay dividends with the tough-talking union president.

“Ford’s commitment to the UAW has come with a significant cost versus our competition over the years," Truby said. "Hopefully we have built enough trust to reach a fair deal that works for all. That’s our focus.”

The UAW did not respond to a request for comment Friday morning. Fain is scheduled to provide a contract negotiations update to UAW members on Facebook live at 5 p.m. Friday.

Ford highlights areas it has exceeded UAW expectations

The automaker points to its 2019 contract and actions over the past four years as evidence of commitment and good faith. Ford spokeswoman Jessica Enoch offered these highlights to the Free Press:

• In closing Romeo Engine, every Ford employee either chose to retire or relocate. Many are now building power units at Van Dyke Electric Powertrain Center.

• Ford is the top employer of UAW-represented hourly autoworkers, with more than 57,000 UAW-represented employees. This is a choice that comes with a $1 billion higher annual labor cost compared to GM and Stellantis.

• Ford has exceeded job and investment commitments made in the last three UAW contracts, most recently creating or retaining 5,600 additional UAW-represented jobs beyond the 8,500 committed and investing $1.4 billion in UAW-represented facilities beyond the $6 billion committed in the 2019 contract.

• Ford launched a $1 billion, five-year plan to upgrade factories to improve the worker experience, ranging from lunch rooms to bathrooms, starting in 2022, rather than waiting for negotiations.

• Ford has the lowest percentage of temporary workers among U.S. automakers, with 3% or about 1,700 – converting nearly 14,200 temporary employees to permanent roles during the 2019 contract, many ahead of schedule.

• Ford provides benefits from day one, for all of hourly employees (including temporary employees), something Ford worked with the UAW on last year, rather than wait for negotiations.

What if the UAW strikes anyway?

Analysts say these negotiations are unlike anything from the near past and Ford can't assume anything.

Industry observers note that autoworkers, like much of America, feel threatened financially.

And the UAW seems to be on a bigger mission now.

More: ‘Overflowing with the bull----’: UAW’s Fain cranks up profanities amid Detroit 3 talks

Fair wages vs. competition

Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, told the Free Press, "Fain has already painted the Detroit Three as the enemy ...That’s the hand these companies were dealt."

It’s a difficult balancing act for companies trying to improve shareholder value through revenue generation and cost cutting, Fiorani said. "The union sees themselves as the only ones taking the brunt of this issue. There’s no black and white solution to this issue, there’s a lot of gray. People need a fair wage but the Detroit Three need to remain competitive, forcing both sides to compromise to get to an answer."

The global economy is largely sitting where it was 20 years ago, he said. "If you’re lucky, you’ve kept up with cost of living adjustments. Painting the automotive industry as the enemy is not the right way to go because it's not just the automotive industry."

Ford may be doing things right, but ...

John McElroy, longtime industry observer and host of "Autoline After Hours" webcast and podcast, said Ford deserves praise for many things, including recent visits by Farley to factories to talk with hourly workers about their likes, dislikes, goals. "They loved that," McElroy said.

Fain characterizing all automakers as greedy shouldn't come as a surprise, McElroy said. "It doesn't matter if his words seem unfair to Ford. Shawn Fain is out to change labor relations in the U.S. He is out to save the working class. If Ford feels miffed by them lumping the company in with the others, tough. If Ford feels it should be treated better, it's probably being unrealistic. The UAW is out to win the game. And it's getting down to the nitty gritty here."

'Time of real stress and anger'

What the Detroit Three should realize is that these auto talks reflect considerable anger and tensions among workers on the assembly (line) and on the shop floor, said Harley Shaiken, professor emeritus at the University of California, Berkeley, and an expert on automotive labor. "Over the last 15 years or so, tens of thousands of unionized auto jobs have been lost and painful concessions were imposed in the wake of the bankruptcies of GM and Chrysler. A lot of the angry rhetoric coming from UAW leaders reflects what they’re hearing in the plants. In a time of real stress and anger, many things that deservedly might have been recognized during calmer times are lost."

Nobody knows if there will be three strike targets, maybe two, or possibly one, Shaiken told the Free Press.

"So all of this is coming together in a way that has created panic among investors and Wall Street," he said. "Shawn Fain may view all this uncertainty as strategically of value. Many fiery things that may have been behind the scenes in previous talks are now front and center in an age of transparency.”

Only contract proposals matter, now

No automaker is getting "brownie points" for being a good citizen these days, and it shouldn't be expected, said labor expert Marick Masters, a professor at the Mike Ilitch School of Business at Wayne State University in Detroit.

"The UAW is looking for actions that speak through their proposals," he said. "Shawn Fain is treating each of these companies as part of an industry and he is engaging in what I would consider to be industrywide bargaining. The UAW thinks the companies can do better. What the UAW wants to do is keep the heat on all of them. They’re going to criticize and take pot shots, because 'we're entitled to our just rewards, which is a larger share of the profits.'"

This latest approach is harsher and more worker-centric than previous years, advocating that corporate objectives can include more for workers, Masters said.

A labor strike could reduce production and that would impact profit sharing checks for hourly workers at the end of the year. Ford and its competitors are heavily dependent on selling gasoline-powered cars to help pay for electric vehicles.

But factory workers gave up retiree healthcare, defined benefit pension plans, job protection in the sense of job banks and allowed companies to do massive restructuring in the loss of jobs, Masters said. "Workers are trying to catch up, to get ahead of the game."

Labor conflict: Ford's former violent, thuggish relationship with UAW has completely flipped

He emphasized, "When it comes down to hard bargaining, the UAW is going to look at what you put on the table. That’s how you’re going to be judged. They're not going to treat anybody with kid gloves. Those days are over."

Analysts worry that hourly workers are willing to halt production with a strike. Salaried workers may not want to cross picket lines. Unions, including the Teamsters, Pipefitters and IBEW (International Brotherhood of Electrical Workers) may not want to cross picket lines, either.

Ford and other automakers have begun making contingency plans. Unifor, the labor union that represents autoworkers in Canada, is also negotiating with the Detroit Three at this time.

Content in this story was edited after publishing.

Contact Phoebe Wall Howard: 313-618-1034 or phoward@freepress.com. Follow her on Twitter @phoebesaid.

This article originally appeared on Detroit Free Press: Ford sweetens UAW contract offer in attempt to avoid strike