After months of negotiations, John Deere and the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) have reached a tentative labor agreement. The agreement, which covers approximately 10,000 workers across 14 facilities, will go into effect once it is ratified by the union members.
The agreement includes a wage increase of 5% in the first year and 3% in the second year, as well as an increase in the company`s contribution to workers` healthcare costs. Employees will also receive a signing bonus of $8,500.
One of the most significant aspects of the agreement is a new tiered wage system. New hires will start at a lower wage rate, but will have the opportunity to move up to the higher wage rate after a certain amount of time on the job. This system is intended to help reduce labor costs, which have been a concern for Deere in recent years.
Additionally, the agreement includes a provision for workers to have more control over their schedules. This means that employees will have more flexibility in scheduling vacation time and will be able to have more input on shift schedules.
The negotiations were closely watched by both Deere and the UAW, as the previous labor agreement had expired in October. The negotiations were complicated by the ongoing COVID-19 pandemic, which has had a significant impact on the manufacturing industry.
Overall, the new agreement appears to be a win-win for both Deere and the UAW. The wage increases and improved benefits will help to retain existing employees and attract new ones, while the tiered wage system will help to control costs for the company. The increased flexibility in scheduling is also a positive development that should help to improve the work-life balance of Deere employees.
In conclusion, the new Deere-UAW agreement is a positive development for both parties. The agreement includes significant wage increases, improved benefits, and more scheduling flexibility, which should help to retain and attract employees. The new tiered wage system will also help to control labor costs, which has been a crucial concern for Deere in recent years.