Deere Reaches Six-Year

Union Deal With Employees

Deere & Co. said members of the United Auto Workers union have ratified a new six-year contract covering about 9,500 workers, or roughly 17% of the company’s work force, and 17,000 retirees.

Provisions of the agreement are believed to be; a $3,500 one-time ratification bonus, cost of living increases, annual lump sum payments of 2%–3% based on seniority, increase in medical copayments of $5–$30 depending on service, and substantial pension increases including a “retirement recognition award” of $650 for each full year of service credit earned upon retirement for workers hired before Oct. 1, 1997.

The company retains the right to schedule up to 10 weeks of temporary-layoff “inventory adjustment” shutdowns during production year, and increased supplemental unemployment benefit provisions for laid-off workers.