John Deere workers hold the line to continue strike

Moline, Illinois - John Deere workers will keep their historic strike going after the tentative deal put on the table by management was voted down by union members late on Tuesday.

John Deere workers have been striking since October 14.
John Deere workers have been striking since October 14.  © 123rf/ricochet64

It's been a while since John Deere has seen a labor dispute like this. But now that they've started the first major strike in 35 years, the 10,000 workers spread over 14 facilities have no intention of quitting before their demands are fully met.

The latest company offer clearly wasn't enough to do that – although this vote was much closer than the previous one. After a first proposal was shot down in flames by 90% of the United Auto Workers union (UAW) members, only 55% rejected the improved deal.

"The strike against John Deere and Company will continue as we discuss next steps with the company. Pickets will continue and any updates will be provided through the local union," the UAW said in a short statement on its website.

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The agreement would have seen their wages rise by 10% in the first year and by another 5% in the third and fifth years, as well as an $8,500 bonus, two weeks of paid parental leave, and autism care coverage.

Healthcare costs would also have been locked in, and new hires would have had the option of choosing between a 401k or pension plan.

Holding out for more

United Auto Workers union members will continue to strike.
United Auto Workers union members will continue to strike.  © IMAGO / ZUMA Wire

The offer still falls short of the UAW objectives, as a hated tier system would still affect the pensions of any worker hired after 1997 and mandatory overtime rules were left in place.

It looks like the wage increases aren't quite up to scratch either, especially since workers are well aware of the record profits John Deere is projected to rake in this year.

Income should rise to between $5.7 and $5.9 billion, with a whole raft of business metrics increasing by large margins. There's also the small matter of the money saved through layoffs and demotions before the start of the pandemic, which ended up going to a $1.7 billion stock buyback and $761 million in dividends paid out to shareholders in 2021.

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This context, plus the significant improvements in the second deal offered to the striking workers, is keeping a majority of the UAW membership motivated to hold the line.

The strike is now in its fourth week – and it keeps on rolling.

Cover photo: 123rf/ricochet64

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