John Deere workers represented by the United Auto Workers (UAW) rejected the company’s proposal to extend the current labor agreement. The vote came nearly one month after the agricultural manufacturer said the two sides were “roughly half a billion dollars” apart on a deal.
READ MORE: John Deere, UAW ‘Half a Billion Dollars’ Apart in Contract Extension Clash
“While John Deere continues to outsource jobs, 1,600 workers are still laid off,” UAW President Shawn Fain said. “Our members rejected Deere’s offer to extend their contract because they know their worth and what they deserve. The company failed to make an offer that addressed the issues weighing on the minds of our members, especially job security.”
The UAW did not provide vote statistics.
In July, John Deere said the UAW objected to a proposal that would have extended the existing collective bargaining agreement, which expires in fall 2027, through 2029. Deere employees approved the current deal in November 2021, securing immediate 10% raises and ending a month-long strike that involved over 10,000 workers.
The company said its proposal would have provided an average of $21,000 in additional value, including a $3,000 bonus, 4% wage increases and job security for some longtime employees, while maintaining existing benefits. However, the UAW claimed the wage increases would have fallen below those in the current contract and countered with higher raises, additional lump sum payments and protections against outsourcing.
John Deere declined to “engage in early negotiations,” which sent the offer to a vote on Aug. 23.
Three days before the vote, Deere reported a third-quarter net income of $1.379 billion, an increase from $1.289 billion a year ago. The company added that it expects a fiscal 2026 net income of up to $5 billion.
The day after Deere released its earnings, Fain encouraged members to reject the offer.
“We have a contract with Deere,” Fain stated in the letter. “They have to honor that contract. No company gets to decide they want to circumvent our established process and contract just because they are afraid of a fight in 2027.”
John Deere and the UAW have not responded to Manufacturing.net’s request for comment.
