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Deere, UAW Reach Third Tentative Contract Agreement; Await Vote

Deere & Co. union workers will vote on ratification of a third tentative contract agreement.

Deere & Co.  (DE) - Get Free Report and the United Auto Workers union have reached a third tentative contract agreement and await a vote from employees that could end a strike at the agricultural machinery and equipment maker that began Oct. 14.

The UAW late Friday said it will present Deere's last, best and final offer to employees for a ratification vote. The third tentative agreement includes modest modifications to its last  tentative agreement that employees rejected on Nov. 2, the union said in a statement.   

Deere union employees will remain on strike until the outcome of the ratification vote, the statement said. Employees will receive contract voting information from the local union. The strike affects about 10,000 Deere employees.

Union workers on Nov. 2 rejected Deere's last contract offer with 55% voting no and 45% accepting the terms at 12 plant locations in Illinois, Iowa and Kansas.

Employees at Deere parts facilities in Denver and Atlanta voted to support a separate contract agreement with identical economic terms, according to a Nov. 2 Deere statement.

The second tentative agreement that the employees rejected Nov. 2 included an immediate 10% wage increase and 30% wage increases over the term of contract; cost of living adjustments every three months; healthcare benefits with $0 premiums, $0 deductibles, $0 coinsurance; new paid parental leave and autism care; a company-funded defined benefit pension plan and 401K plan; and a ratification bonus of $8,500,"

Shares of Deere rose slightly on Friday after hours to $358.90. The stock had risen by 0.8% in the regular session.