Oct 13 (Businesshala) – Thousands of Deer & Co (D.E.N.) workers were set to go on strike, days after United Auto Workers negotiators and the tractor maker overwhelmingly rejected a six-year labor contract agreed upon.
Earlier this month, the world’s largest farm equipment maker and the UAW struck a deal after weeks of talks over wages and other benefits, but 90% of union workers voted against the deal.
About 10,000 production and maintenance workers at 14 facilities in the United States were included in the temporary deal.
Union negotiators returned to the bargaining table on Monday to strike a new deal, but have yet to reach a new deal. The strike deadline of 23:59 CT on Wednesday (0459 on Thursday GMT) was set by the union.
The now rejected proposal would have given a 5% wage increase for some workers and 6% for some others. The proposed deal also called for a 3% hike in 2023 and 2025.
Workers understand that they had to make concessions on some benefits in the past and now want some of it back at a time when Deere is doing “very well financially” and labor shortages remain industry-wide is, a source familiar with The Talks told Businesshala.
Deere, which has about 27,500 employees in the United States and Canada, previously said its operations would continue as normal.
A possible strike, however, could cost dearer days of production at a time when it is dealing with supply challenges and inflationary pressures.
The last strike by UAVs against Deere was in 1986 when the workers sat outside for 163 days.
The company is expected to report full-year results in late November. It forecast a record net income of $5.7 billion to $5.9 billion.