UAW Workers Reject John Deere Contract Extension, Set Stage for 2027 Talks

John Deere workers reject company’s contract extension proposal

DES MOINES, Iowa — Members of the United Auto Workers (UAW) have overwhelmingly rejected John Deere’s proposal to extend their current six-year labor contract by two additional years, setting the stage for renewed contract negotiations in 2027.

UAW Local 450’s education chair Jake Lane confirmed on August 23 that rank-and-file members voted against the proposal, which would have kept the existing contract intact until October 31, 2029, instead of its current expiration on October 31, 2027. The vote reflects widespread skepticism among workers toward the company’s motives and economic framing.

“People are glad it was voted down,” said Lane. “They see the quarterly profits. They see the promises to pay out shareholders through buyback.” In 2021, Deere workers conducted a 34-day strike, securing a 20 percent wage increase over six years, cost-of-living adjustments (COLA), and three lump-sum payments. Many workers remain proud of that victory.

The rejected extension would have maintained the current 4 percent annual raises, added a $3,000 signing bonus, and deferred a 3 percent lump sum from fall 2024 to fall 2028. Health insurance terms were to remain unchanged. However, union leadership argued that Deere’s offer did not address worker concerns about outsourcing or job security.

UAW Vice President Laura Dickerson, who oversees the Agricultural Implements Department, criticized Deere’s approach. “John Deere is asking to change a collective bargaining agreement that both sides already negotiated and signed,” she stated on July 31. “When a company comes back to rewrite the deal, it is asking for something. That is bargaining.”

In response, the UAW presented a counteroffer that included a 5 percent annual wage increase, two 3 percent lump sums, the integration of COLA into base wages, and a $2,000 annual contribution to retirement accounts for each year of service. The union also demanded language preventing further outsourcing of work. Deere rejected the counterproposal, calling it financially unsustainable.

Workers cite recent company financial moves as evidence of misplaced priorities. Deere raised its full-year guidance and announced a new $10 billion stock buyback program in June, signaling confidence to investors. Since 2021, the company has distributed over $25 billion to shareholders through buybacks and dividends. Deere’s fiscal 2026 profit forecast remains strong, with net income projected between $4.5 billion and $5 billion.

Concerns about outsourcing also fueled opposition to the extension. Multiple workers reported increased movement of production to Mexico following recent contracts. “Giving up the expiration date reduces our timeline in securing language to protect our jobs,” said a worker from the Davenport, Iowa plant, who requested anonymity.

UAW Region 4 Director Brandon Campbell acknowledged economic headwinds but suggested the timing may not favor labor. “The market is in a downturn, and that will continue into next year,” he said. “Companies love stability; they’ll pay a few extra bucks to have stability, and they can certainly afford a few extra bucks.” He also expressed concern about potential policy shifts under a new presidential administration.

Workers’ frustration stems from long-standing distrust. Pete Schaefer, a veteran at the Harvester Works in East Moline, Illinois, recalled layoffs in 2008 despite high order volumes. “The company is going to look out for the shareholders and people who invest in the company more than the workers,” he said. “That’s why a lot of us just don’t think they’re doing us a favor.”

The vote signals the union’s intent to pursue more substantial gains at the bargaining table in 2027, rather than accepting a status quo extension. As one steward noted before the vote, “We want a bigger piece of the pie.”