UAW rejects second agreement with Deere

The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) informed Deere & Co. that the production and maintenance employees at 12 facilities in Illinois, Iowa and Kansas have rejected a second tentative agreement. Employees at Deere parts facilities in Denver and Atlanta have voted in support of a separate agreement with identical economic terms.

The UAW has rejected a second agreement with John Deere.

According to the UAW, the vote was 45% in favor of accepting the offer versus 55% against. The union said the strike against Deere will continue, as will picketing activity.

Deere said the “best-in-industry agreements” it reached with UAW negotiators over the weekend would have provided an immediate 10% wage increase and 30% wage increases over the term of contract; healthcare with zero premiums, zero deductibles, and zero coinsurance; new paid parental leave, autism care, and other benefits; groundbreaking retirement benefits; and a ratification bonus of $8500.​

“Through the agreements reached with the UAW, John Deere would have invested an additional $3.5 billion in our employees, and by extension, our communities, to significantly enhance wages and benefits that were already the best and most comprehensive in our industries,” said Marc A. Howze, group president, Lifecycle Solutions and Chief Administrative Officer for Deere.

“This investment was the right one for Deere, our employees, and everyone we serve together. Even though it would have created greater competitive challenges within our industries, we had faith in our employees’ ability to sharpen our competitive edge. With the rejection of the agreement covering our Midwest facilities, we will execute the next phase of our Customer Service Continuation Plan.”