DE · News · 20260805N

Labor Contract Cost Exposure

DEERE & CO · 2026-08-05 · Importance 52 · Surprise 42 · No source text

Deere proposed a two-year extension of its UAW labor agreement through 2029. The UAW counteroffer was approximately $500 million above Deere’s proposal, creating a potential material labor-cost gap. Deere’s proposed package includes a $3,000 bonus and wage increases, while the parties remain in a standoff.

Key facts

Impact estimates

metricdirectionstageexpectedbasis
operating_incomenegativecontingent-0.6%The UAW's counteroffer exceeded Deere's proposal by approximately half a billion dollars.