Deere & Co.'s non-union workers are getting more money, too.þþFollowing the end of a five-week-long strike by the United Auto Workers on Nov. 17 that resulted in pay bumps and enhanced retirement benefits for the union employees, the company announced Tuesday that its salaried staff will receive 8% raises.þþÿThe future success of our company depends on our ability to retain and recruit the best talent in an increasingly competitive global marketplace,ÿ spokesperson Jennifer Hartmann said in a statement. ÿTo do that, we’re committed to putting every one of our employees in a better economic position.ÿþþWhen the UAW's production and warehouse employees went on strike Oct. 14, the company sent salaried staff like supervisors, engineers and financial services employees on to the floors.þþThe company particularly focused on staffing the warehouses to keep parts shipments flowing to farmers with broken machines. Deere also put salaried workers in factories to make some higher-margin products, such as sprayers at the Ankeny plant.þþThe union workers returned to their old jobs as early as 10:30 p.m. on Nov. 17, about 2 1/2 hours after the UAW International announced that 61% of members ratified a new six-year contract with the company.þþThe contract gives workers an immediate 10% raise. Hourly wages for workers on the low end of the pay scale increased from $20.12 to $22.13. Among workers on the high end, such as electricians, the hourly pay went up from $30.04 to $33.05.þþDeere also promised 5% wage increases in 2023 and 2025, as well as quarterly cost of living adjustments, an old element of the UAW contracts that the union conceded under the last deal in 2015.þþThe union received a better offer from the company after 90% of members rejected the first contract Oct. 10. At the time, Deere offered immediate 5% and 6% pay bumps, depending on the position. The company offered 3% increases in 2023 and 2025.þþWorkers received an $8,500 ratification bonus under the contract approved last week, up from an offer of $3,500 on Oct. 10.þþJefferies analyst Steve Volkmann projects that the first-year raises and the ratification bonuses cost Deere about $235 million. That amounts to 4% of the low-end of the company's projected profit for the fiscal year that ended Nov. 1.þþDriven by high corn prices and a period of time in which many farmers needed to replace machines, Deere executives told analysts in August that they expect the company to earn $5.7 to $5.9 billion in the fiscal year — 62% above 2013 profits, Deere's previous record year.þþThe 10,100-worker strike across Illinois, Iowa and Kansas disrupted production. Executives will offer their first peek into how the walkout impacted Deere's bottom line Wednesday morning, when the company releases its annual report and shows how close it came to hitting its previous profit target.þþBut Wednesday's release will only show part of the strike's financial impact on the company. The walkout started with only two weeks left in the fiscal quarter.þþTyler Jett covers jobs and the economy for the Des Moines Register. Reach him at tjett@registermedia.com, 515-284-8215, or on Twitter at @LetsJett.
Source: Des Moines Register
