United Auto Workers (UAW) members still need to ratify the agreement, but it appears Deere & Company has dodged a potentially disrupting labor strike at a time when it’s all hands-on deck to build machinery to meet growing demand.
Brad Morris of Deere & Company released a statement: “After six weeks of negotiations, John Deere and the UAW have reached a tentative agreement that honors the enormous contributions of John Deere’s production and maintenance employees and builds a strong foundation for our shared success in the future. Through this agreement, John Deere reinforces our long-standing commitment to provide employees the opportunities to earn the best wages and most comprehensive benefits in the agriculture and construction industries.”
UAW International President Ray Curry announced that “Our UAW John Deere national bargaining team worked tirelessly to create substantial gains for members.”
Details of the agreement will not be released until all UAW members at Deere manufacturing locations have reviewed the terms on October 10. The current contract was set to expire October 1 and impacts 10,100 employs at 12 Deere & Company facilities.
Shortages of steel, computer chips, tires, a variety of parts, etc., has stymied machinery manufacturers from meeting orders for new machinery, which have burgeoned since last winter. It is not unusual for farmers to have to wait six months or longer to get a new tractor, combine or planter.
Supplies of late-model machinery are slim, at best. So, a strike right now could be disastrous for farmers wanting to upgrade their equipment technology.
Over 30 years have passed since Deere’s last strike. That labor dispute lasted five months and cost the company $100 million.
EDITOR’S TAKE:
This is good news for farmers and ranchers as they enter the harvest season. Any additional disruption to the supply chain at this time could be disastrous. It is also good for the employees of Deere and shareholders to get this agreement put in place prior to the deadline and thus avert a strike. We first reported on this matter in the AIR a few weeks ago. We’re pleased by this development and thought you should be updated on the progress.
