Deere & Co. (DE) - Get Deere & Company Report shares traded moderately higher in premarket trading Friday after the agriculture equipment giant struck a final deal with the United Autoworkers Union that brings an end to a strike that lasted just over a month.
The United Autoworkers Union announced Wednesday night that it has voted to ratify a tentative agreement that ends the strike of thousands of John Deere workers.
The new deal includes a $8,500 signing bonus, a 20% increase in wages over the life of the contract and 10% this year as well as cost-of-living adjustments, three lump-sum payments and changes to retirement and performance benefits. The agreement was approved by a vote of 61% to 39%, according to UAW.
The work stoppage included employees at the agricultural machinery giant across 12 facilities in three states and just crossed the one-month mark after commencing on Oct. 14, when workers overwhelmingly rejected a contract offer from the company that would have given immediate 5% or 6% wage raises, among other offerings.
By a much closer margin -- 55% against and 45% in favor -- UAW workers rejected a second tentative agreement earlier this month that would have guaranteed an immediate 10% wage increase as well as improved retirement benefits to new employees and more.
Investors and analysts pointed to the strike and ongoing negotiations as evidence of how workers have the apparent upper hand in terms of post-pandemic demand for labor.
The Labor Department last week reported that a record-high number of employees -- representing some 3% of the total workforce -- quit their jobs in September, while job opening figures also hover near record highs.
At last check, shares of Deere were up 2.8% at $363.41. Year to date the stock is up 32.09%.