General Motors' latest contract offer to the Canadian Auto Workers union moves talks "toward a settlement as opposed to a strike," CAW president Buzz Hargrove said ahead of a Tuesday deadline, according to Bloomberg News.

Bloomberg said that GM on Sunday afternoon submitted a proposed contract that removes lump-sum pay raises in favour of percentage gains and eliminates an earlier proposal to reduce cost-of-living increases.

The union's contracts with Ford and Chrysler also expire on Tuesday, Bloomberg said, but the union chose General Motors as the so-called target automaker to be the focus of negotiations, and only General Motors faces a Tuesday strike deadline.

After reaching an agreement with General Motors, the union will try to adapt that contract to Ford and Chrysler, Bloomberg added.