A Groundbreaking Offer

Our employees represented by the UAW are important to John Deere’s future. With the second tentative agreement reached between John Deere and the UAW’s bargaining team, they would share in our current and future success through wages and benefits that are not only the best in our industries – they are groundbreaking.

No other UAW-US major manufacturer has a labor agreement that provides:

  1. Cost-of-living adjustments every 3 months for inflation. What does this mean? If inflation increases, their wages will too.
  2. A company-funded defined benefit pension plan and defined contribution plan (401k) to create more security in retirement. Why does this matter? In retirement, they will receive a monthly pension payment from John Deere and the benefit of tax-deferred savings bolstered by the company.
  3. An entirely new cash balance savings to provide more retirement income and flexibility. What will this give these employees? Tens of thousands of dollars more to spend after their career.

Growing Wages

Enhancing Healthcare

$82,000 in new money for average employee.

$6-9 hourly wage increase over the contract depending on job classification—a 30% increase.

New hire coverage first day of the month after 30 calendar days of employment.

General Wage Increases (GWI) and Lump Sum Payments (LSP)

2021
10.0% GWI

2022
3.0% LSP

2023
5.0% GWI

2024
3.0% LSP
2025
5.0% GWI
2026
3.0% LSP

Performance Incentive and profit-sharing plan maintained. 

Cost of Living Adjustments (COLAs)*

  • Protection against inflation
  • Adjusts every 3 months with inflation
  • Formula based on The Consumer Price Index (CPI-W) published by the U.S. Department of Labor, Bureau of Labor Statistics

Industry-leading Health Insurance

  • Continuation of Deere Premiere Network
  • No change in copayments at point of care

Improvements

  • Paid parental leave
  • Vision care transitioned from every 24 months to every 12 months
  • Autism care coverage

 

Ratification Bonus of
$8,500

Pay

$0

premiums
deductibles
coinsurance

 

Securing Their Future

$270,000 for each employee in new retirement benefits, on average.**

All current employees and new hires will be eligible for Traditional PLUS.

Traditional PLUS

  • Traditional defined benefit pension (i.e. monthly payments)
  • Increased multiplier for monthly pension to $48 for each year of service

Additional Money

  • Cash balance savings at 2.5 - 4.0% annual company contributions
  • Company will make additional contributions to the cash balance saving based on years of service (in 2021, employee with 10 years of service earns additional $20,000 contribution to cash balance savings, in addition to the 2.5 - 4% annual contribution)
  • TDSP/401k - Company matching contributions of $0.60/dollar up to 6%

Retirement Bonus:

$37,500

(10 to 24 years of service)

$50,000

(25+ years of service)

All employees will have the option to select a new defined contribution retirement—Choice PLUS—that includes an enhanced TDSP/401k with company matching contributions of $0.70-$1.00 up to 6% based on the same company performance metrics that determine profit sharing. For employees who elect Choice PLUS, the company will also contribute 5% of the employee’s annual wages every year to their TDSP/401k.

*COLA assumes 2.34% annual inflation
**Calculated for employee at age 65