John Deere reaches agreement with labor union following strike

United Auto Workers at John Deere plants in several states walked off the job at midnight Oct. 14

John Deere reaches agreement with labor union following strike

John Deere announced that it had reached a tentative deal with the United Auto Workers ( UAW) to create a new labor agreement after a strike by employees.

John Deere officials stated in an email that while the agreement needs to be approved by UAW workers before it can take effect. However, John Deere officials indicated in an emailed statement the agreement would last six year for the union's "10.100 production and maintenance employees at twelve facilities in Iowa, Illinois and Kansas."

Deere and UAW reached a tentative agreement for a six-year labor contract that covers nearly 100 production and maintenance workers at Deere's parts plants in Atlanta and Denver.

UWA members quit their jobs at John Deere plants across the country earlier this month after they rejected the latest contract offer from the agricultural equipment giant. It included 5% raises to some workers and 6% raises to others. There were also 3% increases in 2023-2025.

DAVENPORT (IOWA - OCTOBER 15, 2019: Striking workers occupy the John Deere Davenport Works facility in Davenport, Iowa on October 15, 2021. Yesterday, more than 10,000 John Deere workers, represented by UAW, quit the job after they failed to succeed (Scott Olson/Getty Images).

FOX Business spokeswoman Jennifer Hartmann from John Deere said that while it is important to reach a mutually beneficial arrangement with the UAW, the company's immediate concern is serving the needs of customers in critical and time-sensitive industries like agriculture and construction.

Deere workers went on strike citing the company's record profits. They argued that their hard work during the COVID-19 pandemic and dedication should have earned them more than what their employer offered. More than 90% rejected the initial tentative agreement.

DAVENPORT (IOWA) - OCTOBER 15, 2015: A truck pulls a piece John Deere equipment out of the factory, past picketing workers outside the John Deere Davenport Works facility in Davenport, Iowa on October 15, 2021. Representative (Scott Olson/Getty Images/Getty Images) More than 10,000 John Deere workers

"Strikes are not easy on workers and their families," John Deere workers said in a statement that Mitchell Smith, UAW Region 8 Director, stated at the start of the strike.

Updated Date: 31 October 2021, 15:46

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