Members of the UAW rejected an offer from Deere to extend its contract with the union by two years, setting up what will likely be a contentious negotiation for a new contract next year

Members of the United Auto Workers (UAW) at John Deere facilities overwhelmingly voted against a company proposal to extend their current contract by two years. The existing agreement, ratified in 2021 after a 34-day strike involving approximately 10,000 production workers, was originally set to expire in the fall of 2027. This rejection means that John Deere and the UAW will now prepare for full contract negotiations next year, rather than deferring them until 2029.

John Deere had sought the early extension to provide continuity and certainty during a period of agricultural downturn and uncertain market outlook, citing major Iowa and Quad Cities factories running at less than half the volume seen during the last contract talks. The company's offer included an estimated $21,000 in combined wage increases and bonuses per average worker over two years, including a $3,000 bonus, 4% General Wage Increases in 2026 and 2027, and an additional 3% lump sum payment in 2028. Deere emphasized that the proposal preserved all current terms, such as market-leading healthcare, Cost of Living Adjustments (COLA), and pension benefits.

However, the UAW viewed Deere's attempt to change the collective bargaining agreement as a call for negotiations. UAW Vice President Laura Dickerson stated that if Deere wanted to alter the deal, it needed to respect the bargaining process, implying that the union's counteroffer, which Deere claimed exceeded its proposal by roughly $500 million, should be considered. The union also pointed to Deere's strong financial performance, including a projected net income of $5 billion for 2026, and said that workers, like shareholders, deserve a voice in the company's future.

Deere reported a third-quarter net income of $1.379 billion, an increase from $1.289 billion in the same quarter of 2025, with worldwide net sales and revenues rising 5% to $12.608 billion. Despite this, the company's Production and Precision Agriculture segment saw sales decline 14% and operating profit fall 39% in the second quarter. The rejection of the extension means the opportunity to lock in added value and stability now is lost, and both parties will return to the bargaining table in 2027 under potentially more contentious circumstances, reminiscent of the 2021 strike.