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WATERLO, Iowa (KWWL) — Union workers at John Deere have rejected a contract extension offer that would have kept their current agreement in place through 2029.
Union members voted to turn down the proposal. Union leaders said the offer failed to address several key issues, particularly job security concerns stemming from the 1,600 workers laid off over the last two years.
An economic expert at Iowa State University said John Deere’s move to offer an extension was unusual. However, it’s not surprising given how the Trump administration’s tariffs have impacted the agricultural economy.
“Significant international demand for particularly soybeans and pork, but other areas of agriculture as well,” said Peter Orazem, ISU professor of economics. “They’re pushing up the cost of inputs, both at the farmer side and at the John Deere manufacturing side.”
Orazem said the union’s decision to reject the extension wasn’t a surprise. He said the economic conditions may not be better in 2027 when the current contract expires and formal negotiations will begin.
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