John Deere Workers Reject Second Proposal, Continue Strike
John Deere workers voted 55% to 45% in favor of staying on strike after a second attempt at a deal failed. The number of striking workers is at 10,000.
The farm and construction equipment maker had strikers at 14 facilities that began on Oct.14 after 90% of the United Auto Workers (UAW) Union of John Deere rejected an earlier proposal. After the most recent vote, the number of striking facilities is down to 12 in Illinois, Iowa and Kansas, with members in Atlanta and Denver approving the latest proposal.
“The strike against John Deere and Company will continue as we discuss next steps with the company. Pickets will continue,” the union said in a statement.
Company officials expressed disappointment in the rejected deal.
“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.
The rejected proposal covered a six-year deal that included 10% pay raises for the first year, followed by 3% to 5% increases over the next few years. Wages would adjust based on the cost of living and stay ahead of inflation. It also offered a signing bonus for ratifying the contract.
However, workers are demanding more since Deere continues to see record profits, according to the Des Moine Register. They want an end to a two-tier compensation system established by the company in 1997 that gives less health and pension benefits to new hires.
According to the Detroit Free Press, the UAW union has a $790 million strike fund, so they can provide workers with healthcare and a weekly strike pay of $275. Though the union was working toward an agreement, the workers will continue to strike until they reach a better deal.
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