Kathmandu— John Deere is attempting to gauge the resolve of its ten thousand United Auto Workers (UAW) employees at nine Midwestern plants by proposing a two-year extension to their current contract, which is set to expire October 31, 2027. The move comes as the UAW prepares for a leadership election and six months before existing contracts with major automakers are up for renewal. Deere’s proposal has been met with resistance from union members, who will vote on it August 23 after previously rejecting two offers during a significant strike in 2021.

Testing Union Strength

John Deere initiated discussions about extending the six-year contract to eight years this summer, seemingly testing the UAW’s willingness to negotiate favorable terms. The company's approach appears aimed at assessing the union’s strength ahead of upcoming negotiations with Ford, General Motors, and Stellantis in 2028. After initial back-and-forth, the UAW effectively rejected Deere’s initial overtures.

Recent Labor Action

In 2021, John Deere workers engaged in a thirty-four day strike that garnered national attention. The workers ultimately secured a twenty percent pay increase over six years, along with a cost-of-living adjustment (COLA) and three lump sum payments. Jake Lane, education chair at UAW Local 450 in Des Moines, Iowa, noted the lasting impact of this victory, stating, “Everybody is still pretty proud of our strike.” The successful outcome of that labor action likely influences the current negotiations.

Upcoming Vote

Despite the previous resistance, Deere has put forward a formal proposal for members to vote on August 23. The extension would push the contract expiration date beyond when new agreements with the Big Three automakers are expected to be finalized in May 2028.

Members will cast their votes on the proposed contract extension later this month, potentially setting the tone for future negotiations with other major automotive manufacturers.

(With inputs from Jacobin)

Originally published on abcnews.com.np.