John Deere has offered the UAW a two-year extension of its current collective bargaining agreement, set to expire in fall 2027, the Moline-based company announced today, July 7.
“With agricultural equipment demand down and the outlook uncertain, we are proposing an extension now to provide greater continuity and certainty for employees, the business, and our customers,” the company said in a brief statement issued to the media Tuesday.
If accepted, the current labor agreement would be extended through Oct. 31, 2029.
The current UAW-John Deere contract was a six-year agreement ratified by the union in November 2021 following a month-long strike. The contract covered about 10,000 production and maintenance employees at 12 plants in Iowa, Illinois, and Kansas. It was ratified by an overall vote of 61% to 39%.
Regarding the extension offer, the company said: “This proposal preserves everything in the current agreement — including market-leading healthcare coverage, cost-of-living adjustment (COLA), and pension benefits — while also providing added confidence and stability through additional compensation for employees and their families during a period of economic volatility. This stability can only be secured through a contract extension now.”
John Deere is seeking the UAW’s decision by 11:59 p.m. Monday, Aug. 31.
“If the extension is not accepted, both sides would need to negotiate a new agreement when the current contract expires,” the statement said.
The company added that it is continuing “to improve our products and transform how we work for our customers in a highly competitive environment. Through this offer, we continue to support our employees, maintain reliability for our customers, and strengthen the communities where we live and work.”
The offer comes amid concerns by union members over significant layoffs and job outsourcing over the past few years.
The QCBJ has reached out to the UAW for comment and is awaiting a reply.
But in a Facebook post, UAW Local 450 in Polk County, Iowa, informed members of the development late Monday, July 6. The proposed agreement would move the contract expiration date to Oct. 31, 2029.
“This proposal was initiated entirely by the company,” the local’s post said. “It was not requested by the UAW, and it is not the result of contract negotiations.”
Local 450 indicated that UAW Vice President Laura Dickerson is gathering information and addressing members’ questions. “As more details become available, they will be shared with the membership … We understand this is unexpected news and that many of you will have questions.”
