John Deere employees represented by United Auto Workers have rejected a proposed two-year extension to their existing labor contract, setting the stage for negotiations to start in October 2027.
The extension, according to an update on John Deere’s website, maintained what employees won in the existing contract and would have added “additional compensation for employees.” Deere also said UAW’s counteroffer on the extension “significantly exceeds our proposal — by roughly half a billion dollars.”
Deere’s proposed extension included a 4% raise in both 2026 and 2027, along with several bonuses, according to a report from AgWeb.
Around 10,000 John Deere employees in the U.S. are covered by the current contract, which followed a five-week strike in 2021. It took three offers from Deere before the workers ratified that agreement, which granted employees an $8,500 signing bonus, 20% increase in wages over the lifetime of the contract with 10% of that increase occurring in 2021, a return to cost-of-living adjustments and three 3% lump-sum payments. Union members also received enhanced retirement options and additional bumps in Deere's incentive compensation plan.
“While John Deere continues to outsource jobs, 1,600 workers are still laid off. Our members rejected Deere’s offer to extend their contract because they know their worth and what they deserve,” said UAW President Shawn Fain. “The company failed to make an offer that addressed the issues weighing on the minds of our members, especially job security. We’ll see Deere at the table in 2027.”
Powered byJohn Deere provided the following statement to Equipment World regarding the rejection of the contract extension:
“We are disappointed by the outcome of today’s vote. The current agreement remains in place through October 2027, when Deere and the UAW will return to negotiations. We proposed the extension because we believe added stability and certainty would benefit our employees, customers, and business in a challenging environment.
“Those market realities have not changed. Demand remains well below 2021 levels, approximately 1,200 production employees remain on layoff, competition continues to intensify, and the outlook for a significant recovery remains uncertain.
“Like every successful company, we must continually evaluate how we operate, compete, and prepare for the future. Operational challenges and competitive pressures cannot be ignored, and they will continue to shape our decisions.
“Our responsibility remains clear: to deliver for customers, improve our performance, and strengthen the company for the future.”
