Workers continue striking as John Deere's contract offer doesn't match its record profits


JohnDeere Labor UAW Unions

In a powerful statement that the core of a union is its workers, not its leaders, striking workers at John Deere rejected a proposed contract deal in a Tuesday vote, opting instead to continue their strike. But the company says that was its final offer and it will not resume bargaining.

Around 10,000 workers at plants in Iowa, Illinois, and Kansas have been on strike since October 14 after rejecting the first deal their union leadership brought. The second proposal was voted down by a 55% to 45% margin, a dramatically closer vote than the 90% who rejected the first contract offer. The second proposal included larger pay raises, improved the pension plan and preserved it for future employees, increased lump-sum payments to retiring workers, introduced two weeks of paid parental leave, and increased the contract ratification bonus. 

With John Deere making record profits, though, and likely to benefit from any infrastructure bill Congress passes, workers could reasonably feel that the company could offer more.

“In 1997, Deere reported a net income of $817 million. In 2021, they are projected to make $5.7 billion,” Local 79 education chair Dave Parkin told members at the ratification meeting for the first proposed contract, Jonah Furman reported. “While Deere profit has grown almost 700 percent since 1997, our buying power has shrunk by 35 percent.”

The second contract proposal included a larger raise, but not a raise that came anywhere close to keeping pace with the company’s increased profits.

The workers’ determination to roll back a two-tier system introduced in 1997, with earlier hires getting better pay and benefits, was the key issue in the strike from the beginning. The first proposed offer introduced what workers called a third tier, while the second proposed deal took some steps toward equalizing the pre- and post-1997 workers. But it didn’t get all the way there—crucially, post-97 workers would still not get retiree health benefits—and the workers are willing to keep fighting on that point.

With the company unwilling to return to bargaining, it seems quite likely the strike may continue into 2022.