John Deere Doubles Wage Increases, Boosts Retirement Benefits

In its latest offer, Deere & Co. executives doubled wage increases and boosted future retirement payments for United Auto Workers members.þþAn outline of a new contract between the company and the union released Sunday afternoon shows that 10,100 striking UAW members will receive 10% wage increases, compared to what they made earlier this year. That's up from a 5% or 6% increase that Deere offered in an earlier proposal, which nine out of 10 union members rejected Oct. 10.þþThe company will also continue its pension program for new hires, which Deere was going to cut under the prior agreement. And, compared to that agreement, the new proposal pays a higher rate for future retired workers. A 25-year employee would see an extra $150 a month.þþThe company also added lump sum payments that can reach six figures for future retired employees.þþChris Laursen, a 19-year painter at Deere's Ottumwa plant and the former UAW Local 74 president, said he expects to vote in favor of the contract after rejecting the Oct. 10 proposal.þþÿIt's a hell of a lot better than what (the union) got us the first time,ÿ he said. ÿAfter two weeks-plus of strikes, we definitely made some gains on this.ÿþþThe UAW's members will vote on the contract at 10 a.m. Tuesday. Union leaders said in a statement that Deere workers will remain on strike at least through the contract ratification.þþThe contract represents workers at 12 Deere locations in Illinois, Iowa and Kansas. The Iowa plants include factories in Ankeny, Davenport, Dubuque, Ottumwa and Waterloo. The UAW also represents Deere workers in Colorado and Georgia under a separate contract.þþThe strike, which began Oct. 14, is the first that the UAW has called against Deere since 1986. The action came as the company celebrates record profits, with executives expecting Deere to earn $5.7 billion to $5.9 billion for the fiscal year that ends Monday. CEO John May's pay increased 160% in 2020, to $15.6 million.þþAt the same time, several UAW members said they felt the company owed them big raises after they worked through the COVID-19 pandemic, with executives telling them they were ÿessentialÿ employees. The strike also comes as Deere and other manufacturers struggle to find enough workers.þþThe lowest level Deere employees covered in the contract, such as foundry product, would see their hourly wages immediately increase from $20.12 to $22.13. The highest level workers, such as electricians, would see hourly wages rise from $30.04 to $33.05.