Deere, UAW Reach Tentative Pact; Strike Continues for Now

Union workers would get wage increases of 10% in the first year.

Members of the United Auto Workers strike outside of a John Deere plant, Wednesday, Oct. 20, 2021, in Ankeny, Iowa. The farm equipment manufacturer reached a tentative labor agreement Saturday, Oct. 30, with the United Auto Workers union.
Members of the United Auto Workers strike outside of a John Deere plant, Wednesday, Oct. 20, 2021, in Ankeny, Iowa. The farm equipment manufacturer reached a tentative labor agreement Saturday, Oct. 30, with the United Auto Workers union.
AP Photo/Charlie Neibergall, File

MOLINE, Ill. (AP) β€” Union workers at Deere & Co. would get wage increases of 10% in the first year and 5% each in the third and fifth years under a tentative contract reached between the farm-equipment maker and the United Auto Workers union.

The workers would get 3% lump sums in the second, fourth and sixth years of the deal. They would also get a ratification bonus of $8,500 and no changes in the cost of their health insurance, according to a summary of the agreement posted Sunday on the union website.

The company and the UAW reached a tentative agreement Saturday that would cover more than 10,000 workers at 12 Deere locations in Iowa, Illinois and Kansas. However, a strike that began Oct. 14 will continue while workers review the terms of the deal ahead of a ratification vote.

Union members previously rejected a proposed contract that included immediate 5% raises for some workers and 6% for others, and 3% raises in 2023 and 2025.

The Moline, Illinois-based company reported $4.7 billion in net income for the first nine months of its fiscal year, more than double the $2 billion of the same period a year earlier.

A labor shortage affecting many industries also gave workers more leverage to demand better pay and benefits.

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