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Deere has not publicly commented on changes to its second
contract offer, which was rejected earlier this month, but the
United Auto Workers (UAW) union, which represents the striking
workers, said on Friday the company had made a "last, best and
final offer" that included "modest modifications", without
elaborating.
Workers at facilities in Illinois, Iowa and Kansas have been on
strike since the middle of October after having turned down
Deere's attempts to tie them down to a new deal, prompting the
company to say "all options are on the table".
The workers are demanding better pay from Deere, which has
forecast a record net income of $5.7 billion to $5.9 billion
this year, to claw back concessions they made on some benefits
in the past.
The striking workers are getting a good amount of community
support, which further reinforces their push, UBS analyst Steven
Fisher, citing a professor of labor relations, wrote in a
research note.
Deere has so far refused to comment on the impact of the strike
on production, but Bernstein analyst Chad Dillard estimates the
company will forecast fiscal 2022 net income below Wall Street
expectations, in part due to the strike impact, when it reports
results next Wednesday.
The Illinois-based company has attempted to make up for the loss
of production by training salaried employees, but Bloomberg
reported
https://www.bloomberg.com
/news/articles/2021-11-05/the-deere-strike-is-starting-to-ripple-across-supply-chains
earlier this month that Deere's customers were facing weeks-long
delays for parts orders.
The last strike against Deere by the UAW was in 1986 when
workers sat out for 163 days.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by
Shailesh Kuber)
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