Deere, union resume negotiations amid strike

In this article:

Oct. 18—OTTUMWA — As a worker strike entered its fifth day, Deere and Company has confirmed its resumed talks with a union representing more than 10,000 of its employees.

Deere & Company, the formal name of the company that makes John Deere tractors and other equipment, and a spokesperson for the United Auto Workers union both confirmed Monday that sides have resumed negotiations.

Thousands of workers in three states and 14 plants went on strike. About 600 workers are impacted and currently manning picket lines at John Deere Ottumwa Works.

It's the company's first major strike in 35 years, and came after employees rejected a contract offer by a 90% margin last week. The strike began Thursday.

Jen Hartmann, director of public relations for Deere, said the company remains committed to resolving the strike.

"We remain committed to providing our production and maintenance employees with the opportunities to earn the best wages and most comprehensive benefits in our industries," she said.

Brian Rothenberg, director of public relations at UAW International union, also confirmed talks had resumed between the two sides. However, he didn't answer additional questions about the deal sought, and how close the two sides may be to a potential deal.

The strike comes after Deere projects a fiscal year profit record, and a year after CEO John May saw a 160% increase in pay, largely fueled by performance bonuses.

Workers were offered a 5% or 6% raise, depending on their job. The rejected contract would have provided additional 3% raises in 2023 and 2025.

The agreement would eliminate the company's pension program for employees hired after Nov. 1, replacing it with a 401(k) option with a 100% match up to the first 6% of earnings.

That's a continuation of the company's path toward phasing out its pension program. A two-tier system created for employees hired in 1997 and after gives them less pension benefits, supplemented by a 401(k) plan and eliminated retiree health benefits.

Last week, an economist at Iowa State University told the Iowa Capital Dispatch they didn't expect the strike to last long.

"They're not striking from a position of weakness," said Dave Swenson. "From what I can tell, I don't see how this strike lasts a long time."

Swenson pointed to a workforce shortage and Deere's desire to hit record profit targets.

Kyle Ocker is the editor of the Ottumwa Courier and the Oskaloosa Herald. He can be reached at kocker@ottumwacourier.com. Follow him on Twitter @Kyle_Ocker.

Advertisement