Stunning Deere Employees Approve A New Contract on Third Attempt


About 10,000 workers at agricultural equipment maker Deere & Company will return to work after a contract was approved Wednesday, with one contract expiring. five-week strike This primarily affected 14 facilities in Iowa and Illinois.

Six-year contract approved, 61 percent to 39 percent, after workers voted on two previous deals between the union and the company, known for its distinctive green and yellow color John Deere Product: %s. The new contract includes language that allows the company’s performance to be more generous.

According to a union spokesperson, under the agreement, workers will be able to exceed 20 percent of their base wages instead of 15 percent when they meet productivity targets.

The other provisions of the contract are the same as in a contract. offer workers refused early NovemberIncluding wage increases of 10 percent this year, 5 percent in 2023 and 2025, and lump-sum payments equal to 3 percent of wages for the remaining years of the contract.

This offer is also a gift to future employees. traditional retirement — something that current workers have, but the union’s initial deal with the company ignores new hires and establishes a post-retirement health fund.

About 55 percent of workers voted to reject The second deal between Deere and the UAW, with some complaining that pay increases are too small for a company. expected will earn approximately $6 billion this fiscal year. Others cited the company’s performance pay, which they said was too difficult for many employees to achieve.

Matt Pickrell, a longtime worker at a John Deere plant in Ottumwa, Iowa, said some workers are weak in jobs where performance pay is virtually impossible, such as workers on an assembly line slowed by supply chain disruptions.

Mr. Pickrell said when it became clear there was no way to meet a new performance target, he had seniority for a different role, but younger workers didn’t have that option.

“It creates another layer,” said Mr Pickrell, referring to a compensation system where workers with less seniority receive lower pay or benefits.

Mr. Pickrell said members of the union negotiation team told workers in Ottumwa on Wednesday morning that the company had promised to adjust its performance plan to better account for circumstances beyond a worker’s control.

After the workers rejected the second deal, said He said his offer was generous enough that he could afford it and that he did not intend to return to the bargaining table. However, the two sides held further talks and on friday A third agreement was reached proposing changes in the incentive scheme.

The strike was part of a project. increase But since then, some employers have avoided potentially massive strikes by negotiating last-minute deals with unions, including the healthcare provider. Kaiser Permanent and a group Hollywood studios.

Workers’ willingness to reject two offers with significant wage increases reflected the strength of their bargaining position and particular pressures on Deere as the nation faced labor shortages.

While Deere continued to operate in factories with the help of salaried workers throughout the strike, Larry Cohen, former head of Communications Workers of America, said in an interview this month that he was deeply skeptical that the company could achieve that. In order to avoid a major impact on production.

He said this reflects the advantage of company-wide bargaining workers, which is similar to an approach common in Europe and South America but relatively rare in the United States.

“There was an opportunity – we can take it as far as we can because the risks are low, they produce nothing,” said Mr. Cohen, steering the mindset of the workers.

But some workers said they were worried that public opinion would start to turn against them if they pulled out of a contract with significant improvements.

“How would it appear to the public if we turned it down?” Just before the second vote, another Deere employee in Ottumwa, who opposed the initial deal, said Chris Laursen.

“This is a good win for the American labor movement if we take what we have now,” Mr. Laursen added. “I hope it helps empower workers.”



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