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Net income soared to a record $4.7 billion, up 84% on the same basis. Revenue for the first three quarters of Deere's fiscal year rose to $32.7 billion, up 11% from the same period of 2019 ahead of the pandemic. "Strikes are never easy on workers or their families but John Deere workers believe they deserve a better share of the pie, a safer workplace and adequate benefits." "These are skilled, tedious jobs that UAW members take pride in every day," said Mitchell Smith, a regional director for the UAW. The current financial success at Deere may have led some of the union members to believe they deserved an even better package than the one that was rejected, especially after less lucrative deals in the past. That might have made reaching an agreement that membership would embrace more difficult. We will keep working day and night to understand our employees' priorities and resolve this strike."īut unlike the last two UAW contracts at Deere, which were negotiated during difficult times for the company, these negotiations took place at an especially good time for the company. "We are determined to reach an agreement with the UAW that would put every employee in a better economic position and continue to make them the highest paid employees in the agriculture and construction industries. "John Deere is committed to a favorable outcome for our employees, our communities and everyone involved," said Brad Morris, vice president of labor relations for Deere. It also included improvements in benefits, including an enhanced retirement bonus of up to $50,000. But it could have been lucrative at a time that inflation is running at levels not seen for decades. The average production worker at Deere made about $60,000 last year, and could end this contract earning about $72,000.Īmong the features of the rejected contract was the return of a cost of living adjustment - once a common feature of union contracts that has become rare in recent years. It also eliminated a second lower tier of pay for some more recent hires of the company, bringing them up to the pay of other UAW members. The rejected contract for UAW members at John Deere would have given them immediate raises in their base pay of 5% to 6%, and additional wage increases later in the contract that could have increased average pay by about 20% over the six years of the rejected deal. The company said in August that it sees growing orders through the rest of this fiscal year that runs through November 1, and into the first fiscal quarter of next year. The company makes both agricultural and construction equipment. The strike at Deere & Co., the formal name of the company popularly known as John Deere, shuts operations at 11 factories in Illinois, Iowa and Kansas, and three distribution centers in Georgia, Illinois and Colorado. Overall wages are up, as it appears that employers - both unionized and nonunion - are more willing to give workers what they want to keep them on the job. However, the US Labor Department reports that the number of strikes so far this year is actually down compared to the same period of 2019, the year before the Covid-19 pandemic riled labor markets.
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The union said that 98.6% of members had voted to authorize a strike if there is no new deal by then. Last week, 1,400 members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike against Kellogg, shutting plants where cereal brands such as Rice Krispies, Raisin Bran, Froot Loops, Corn Flakes and Frosted Flakes are made.Īnd earlier Wednesday, the International Alliance of Theatrical Stage Employees - which represents technicians, artisans and craftspersons in the entertainment industry - announced it had set a strike deadline for early Monday morning if they could not reach a new contract with the Alliance of Motion Picture and Television Producers for 60,000 film and television workers. There has also been a record high number of workers quitting jobs. Businesses have been struggling to find the workers they need to fill a recent record number of job openings. And it continues a recent trend of workers flexing more muscle as the dynamics of the labor market tip more toward them and away from employers. This is the nation's largest private-sector strike since the UAW waged a costly six-week strike against General Motors two years ago.
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