Tentative John Deere labor pact includes 10% wage hike

https://ift.tt/2ZJ16ZK

The details of the tentative agreement come more than two weeks after some 10,000 John Deere employees went on strike for the first time since 1986, having rejected a prior tentative agreement that called for a 5% to 6% wage increase for the first year. Shares of Deere rose each of the last two weeks, indicating shareholders continued to expect a speedy resolution to the labor strike.

There are no new tiers, with everyone hired after 1997 having the same retirement options. Deere will also contribute 5% of employees’ annual wages to their 401(k), immediately eligible, the document said. 

The post-retirement health care fund includes cash balance savings at 2.5% for the first through fourth years, 3% in years five through 14, and 4% for 15 years and above, and it includes $2,000 of seed money per year of service. There were no changes to the cost of health insurance, with employees paying no premiums or deductibles, and still having co-pays. 

Subscribe to Crain’s for $3.25 a week

Events surrounding the negotiation have been intense at times. Senator Bernie Sanders, a vocal proponent of labor unions, tweeted shortly after the strike started that “workers who spent years with the company are now being forced off their insurance.”

The company later issued a statement that it will continue providing health care for all striking union-represented production and maintenance employees. 

The union reported earlier in the week that a 56-year-old employee at the Milan John Deere Parts Distribution Plant in Moline, Illinois, was fatally struck in a traffic accident while walking the picket line. Deere also won its bid for a temporary restraining order blocking thousands of union members from picketing at a plant in Davenport, Iowa, with a state trial judge saying workers’ conduct was unwarranted.

High-quality journalism isn’t free. Please consider subscribing to Crain’s.

via Crain’s Chicago Business

October 31, 2021 at 01:46PM

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s