UAW members reject Deere contract extension offer

United Auto Workers (UAW) members voted against Deere & Co.'s (NYSE:DE) proposal to extend the union contract by two years. The farm-equipment manufacturer initially offered to extend the current agreement by two years, with 4% wage increases over two years and $3,000 bonuses for members who agreed by the end of August. The extension would have pushed the contract's expiration from 2027 to 2029.

Deere assured that pensions, healthcare coverage, cost-of-living wage adjustments, and other benefits from the 2021 contract would remain unchanged under the extension. However, UAW President Shawn Fain dismissed the offer, stating it was an attempt to circumvent the standard collective bargaining process. Fain criticized the proposal for not addressing the outsourcing of work from unionized Deere plants and for failing to outline a plan to recall 1,600 laid-off employees.

The UAW president emphasized that the company's offer did not adequately address the concerns of the workers, particularly their job security. UAW members are expected to return to the negotiating table in 2027, according to Fain.