ROCHESTER, Mich. (CBS DETROIT) – Since June, Oakland University and the union faculties try to reach an agreement in the contract negotiations before lectures begin on Wednesday, September 4th.

Tuesday is the last day for negotiations, and if no compromise is found, the professors could go on strike.

“Hopefully they will come to an agreement, but we will see,” said Peter Durham, an Oakland University employee.

Durham hopes that unionized teachers will receive the pay raise he believes they deserve.

“They’ve done a great job over the last few years, so hopefully they will continue to do so,” Durham said.

The university’s latest offer, which it is still sticking to, includes a 16 percent increase in base salary for full-time professors and part-time specialty lecturers, with total compensation set to rise by 21 percent over the next five years.

However, the union says this will not be enough. It is demanding a 20% increase in basic salary for the same period.

“I think there are three possibilities: They disagree and decide to strike, they agree to a collective bargaining agreement, or they agree to continue negotiations until the start of the course and settle the matter that way,” said Brian Bierley, spokesman for Oakland University.

Both sides have found common ground on most issues, including higher travel allowances for teachers, increased research funding and salary increases for teacher promotions.

The only sticking point is money. Bierley is confident that campus management will reach an agreement on Tuesday.

“I’m still cautiously optimistic that we’ll find a solution by the end of the day,” Bierley said.

Negotiations began at 10 a.m. and are being led by a mediator.

Both sides agree that reaching an agreement before classes resume on Wednesday remains a top priority.

Stay with CBS News Detroit for updates on this developing story.