John Deere workers go on strike after failing to reach a contract

After the United Auto Workers union announced it was unable to secure a new deal with the tractor business, more than 10,000 workers at 14 different John Deere plants went on strike at 12 a.m.

Employees represented by the United Auto Workers (UAW) union went on strike after rejecting a firm offer that would have given most workers immediate wages of 5% to 6%. Both sides had until 11:59 p.m. on Wednesday to reach a deal.

The union said in a statement released early Thursday that the corporation "failed to provide a deal that fulfilled our members' requests and requirements."

In a statement, Ron McInroy, director of UAW Region 4, which represents John Deere workers in Waterloo, Iowa, stated, “Pickets have been set up and our members are organized and ready to hold out and fight for a contract they believe meets their needs,” 

“Our members and their families appreciate the community support they have already gotten. Strikes are not easy, but some things are worth fighting for,” according to McInroy.

A proposal to grant the raises was rejected by 90 percent of UAW-represented employees over the weekend.

Given that the corporation is set to produce over $6 billion in profits this year, the workers allegedly believed that the raises were insufficient. Union members were particularly upset that the wage raises were offset by pension reductions for new workers.

In a statement, the firm stated that it is unable to predict when negotiations will be completed or when striking staff will resume work.

Deere & Business's vice president of labour relations, Brad Morris, said the company is dedicated to achieving a deal that “put every employee in a better economic position and continue to make them the highest paid employees in the agriculture and construction industries.”

“We will keep working day and night to understand our employees' priorities and resolve this strike, while also keeping our operations running for the benefit of all those we serve,” Morris said.

The strike on Thursday is the latest in a string of walkouts that has included everyone from Hollywood producers to health-care workers.

The International Alliance of Theatrical Stage Employees stated on Wednesday that it will go on strike on Monday unless an agreement on rest times, food breaks, and compensation could be reached.

Workers plan to picket Deere 24 hours a day, 7 days a week until the two parties reach an agreement. As long as the strike continues, the UAW will pay members $275 per week in strike compensation.

The strike comes after Deere manufacturing workers worked through the pandemic's peak, even as other manufacturers shut down briefly.

Company executives informed the Des Moines Register in May that they were having trouble finding enough staff. Executives informed analysts in August that Deere had already booked all of its probable orders for some agricultural and construction machines through the end of next fiscal year, in November 2022, based on the company's previous pace of production.

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Deere is raking in more cash than it has in the past. The corporation is expected to make a profit of $5.7-$5.9 billion this year, topping its previous record year by at least 63 percent.

CEO John May earned $15.6 million in 2020, up 160 percent from his 2019 salary of $6 million. Much of his additional compensation came in the form of company stock and bonuses tied to Deere's financial performance.

The contract that members rejected on Sunday would have raised salaries by 5% or 6% over what the workers were earning earlier this year. In 2023 and 2025, Deere pledged 3% wage raises, as well as greater monthly benefits for retirees on the company's pension plan. However, for new employees employed after November 1, the corporation would have terminated the pension plan.

The last strike of Deere, in 1986, lasted for 163 days.