United Auto Workers members at John Deere have rejected the company’s proposal to extend their current collective bargaining agreement through 2029, setting the stage for the union and equipment manufacturer to return to the bargaining table in 2027.
The vote took place Sunday. The existing agreement remains in effect through October 2027, according to John Deere.
UAW Local 838 in Waterloo, Iowa, said members voted against the proposed two-year extension and opted instead to proceed with bargaining when the current contract expires.
UAW President Shawn Fain said job security was among the biggest concerns for workers.
“While John Deere continues to outsource jobs, 1,600 workers are still laid off. Our members rejected Deere’s offer to extend their contract because they know their worth and what they deserve,” said UAW President Shawn Fain. “The company failed to make an offer that addressed the issues weighing on the minds of our members, especially job security. We’ll see Deere at the table in 2027.”
John Deere expressed disappointment with the outcome, while pointing to weaker equipment demand and continued uncertainty in the agricultural machinery market.
“We are disappointed by the outcome of today’s vote. The current agreement remains in place through October 2027, when Deere and the UAW will return to negotiations. We proposed the extension because we believe added stability and certainty would benefit our employees, customers, and business in a challenging environment.”
The company said approximately 1,200 production employees remain on layoff and demand remains well below 2021 levels. Deere also said its major Iowa and Quad Cities factories are operating at less than half the production volume seen during the previous round of contract negotiations.
The disagreement comes as Deere continues to navigate the agricultural downturn while posting billions of dollars in annual profits.
According to the UAW, Deere earned nearly $5 billion in profit in 2025 and expects another $4.5 billion to $5 billion this year. The union also pointed to $1.1 billion spent on stock buybacks last year, $1.7 billion paid in dividends and another $7.9 billion authorized for future stock repurchases. Deere Chairman and CEO John May received $27.9 million in total compensation in 2025, according to the union.
UAW Vice President Laura Dickerson, who directs the union’s Agricultural Implement Department, said members weighed those figures when considering the extension.
“Our members see billions going to shareholders through dividends and stock buybacks, said UAW Vice President Laura Dickerson, Agricultural Implement Department Director, “while the workers whose skill and labor make those profits possible are asked to accept less. Our members know their value and said NO to their offer.”
Deere had proposed the extension earlier this summer, arguing that locking in the current agreement through 2029 would provide greater stability for employees and the company during an uncertain equipment market.
The company said its proposal would have preserved provisions in the existing agreement, including health care coverage, Cost of Living Adjustment benefits and pensions, while providing additional compensation. Deere said production employees covered by the agreement have received a 16.5 percent COLA since 2021 in addition to annual general wage increases.
The UAW pushed back on Deere’s approach before the vote, arguing that extending the expiration date of an already negotiated agreement amounted to bargaining and should be handled as such.
With members rejecting the extension, however, the existing contract remains unchanged. Deere and the UAW are now expected to return to negotiations when the agreement approaches its October 2027 expiration.