Under a tentative agreement between Deere & Co. and the United Auto Workers union, workers would receive wage increases of 10% and 5% in the first and third years.
In the second, fourth, and sixth years of this agreement, workers will receive 3% lump sums. According to the union’s summary posted Sunday, the workers would also receive a ratification bonus in the amount of $8,500, and no changes to their health insurance costs.
A tentative agreement was reached between the company and the UAW on Saturday. It would include more than 10,000 workers at 12 Deere sites in Iowa, Illinois, and Kansas. The strike, which began on Oct. 14, will continue as workers review the terms and wait for a vote to ratify the agreement.
Union members rejected a proposal contract that included 5% immediate raises for certain workers, 6% for other workers, and 3% increases in 2023-2025.
The Moline, Illinois-based firm reported $4.7 billion net income in the first nine months, nearly twice the $2 billion for the same period last year.
Workers also had more leverage when there was a labor shortage in many industries. They could demand higher pay and better benefits.