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John deere strike2/11/2024 The question for workers is: how long will the company hold out? Each month the strike drags on will cost the company an estimated $500 million in profits. On November 24, the company will report its actual earnings, and set projections for the new fiscal year some workers think Deere will want to settle before that happens, to protect investor confidence.Īnalysts at Morgan Stanley estimate each day of the strike is costing Deere $58 million in revenue and $17 million in profits. Deere just wrapped up its most profitable year ever-in its fiscal year 2021, which ended on October 31, the company was projected to make $5.7 to $5.9 billion in net income. Wall Street seems more concerned with a prolonged strike than with increases in labor costs, which currently account for 10 percent of the company’s expenses. Yesterday afternoon, however, news broke that there was indeed a meeting scheduled between the UAW bargaining team and management for today. “In order for us to be competitive we have gone as far as we’re gonna go.” “The agreement that we provided is frankly our best and final offer,” Marc Howze, chief administrative officer for Deere, said November 3 in an interview with Bloomberg. The company initially told the media it didn’t plan to return to the bargaining table. “We will always be playing catch-up, because these contracts are six years.” NOT-SO-FINAL OFFER? “If we don’t get caught up now, we’ll never be in this position again,” said Brad Lake, a member of UAW Local 838 in Waterloo, Iowa. They’re pushing for a deal that includes retiree health insurance (currently offered only to workers hired before 1997), shores up the incentive pay system, fixes a broken grievance system, and brings real wages up to pre-’97 levels, taking Deere’s record profits into account. To sweeten the deal, Deere offered an $8,500 ratification bonus.īut for a majority of Deere workers, that wasn’t enough. And it boosted existing pensions and added retirement bonuses. It restored a cost-of-living adjustment that workers had lost in the last contract. It killed the “third tier” Deere had proposed, preserving the option of a traditional pension for all new hires. The agreement included immediate 10 percent raises-double what was in the first TA-plus two more 5 percent raises and three 3 percent lump sum payments during the six-year contract. It came as a shock to many analysts, given the concessions workers had been able to wring out of Deere during their first two weeks on strike. The vote was closer than on the first tentative agreement, which was rejected by 90 percent of members. Company and union negotiators are set to meet today for the first time since the deal was voted down. Workers at the farm equipment manufacturer remain on strike. Members should reach out to their local unions for more information about the time and location of meeting and subsequent ratification votes.A month into the nation’s largest work stoppage, striking John Deere workers are holding out for a better deal.įor the second time in a month, 10,000 Auto Workers at John Deere stunned both the company and the union leadership November 2 by rejecting a tentative agreement. The UAW will not release details of the Tentative Agreement until members at all John Deere locations have an opportunity to meet and review the terms of their proposed contract. “The negotiators focused on improving the areas of concern identified by our members during our last ratification process.” Our members have enjoyed the support of our communities and the entire labor movement nationwide as they have stood together in support and solidarity these past few weeks.”Ĭhuck Browning, UAW Vice President and Director of the Agricultural Implement Department said the agreement contains enhanced economic gains and continues to provide the highest quality healthcare benefits in the industry. “We want to thank the UAW bargaining team and striking UAW members and their families for the sacrifices they have made to achieve these gains. “Our UAW John Deere national bargaining team went back to our local members after the previous tentative agreement and canvassed the concerns and priorities of membership.” said UAW President Ray Curry. also confirmed the agreement on a new 6-year labor contract. That strike will continue until members ratify the deal. MOLINE, Illinois - Union leaders Saturday announced a tentative deal with John Deere to end a labor strike that has now stretched on for weeks.
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