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Deere workers set to go on strike as UAW fails to reach deal By Reuters

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© Reuters. FILE PHOTO – The trademark leaping deer logo can be seen on a sign at a John Deere dealer in Taylor (Texas), U.S.A, 02/16/2017 Image taken February 16, 2017. REUTERS/Mohammad Khursheed

(Reuters) – Thousands of Deere (NYSE:) & Co workers were set to go on strike, days after overwhelmingly rejecting a six-year labor contract that was agreed on by United Auto Workers negotiators and the tractor maker.

After weeks of negotiations on wage and benefits, the UAW and world’s biggest farm equipment manufacturer reached an accord earlier in the month. But 90% of workers rejected the deal.

This tentative agreement covered approximately 10,000 employees in production and maintenance across fourteen facilities located throughout the United States.

The union’s negotiators returned to the table Monday to reach a new bargaining agreement. However, they have yet to agree to any new terms. The union set Wednesday’s strike deadline at 23:59 CT (0459 GMT on Thursday).

Now rejected, the offer had 5% and 6% wage increases for certain workers. In addition, there were 3% wage increases for 2023 and 2025 in the proposed agreement.

Workers understand they made concessions in the past on certain benefits and they now want some back, a source who was familiar with the discussions told Reuters.

Deere employs approximately 27,500 people in Canada and the United States.

However, a strike might cost Deere production days at a moment when the company is facing supply problems and inflationary pressures.

UAW’s last strike against Deere was in 1986, when 163 days of strikes were held.

It is anticipated that the company will report its full-year results in November. It expects record profits of $5.7 to $5.9 trillion.

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