Only a week after United Auto Workers members ratified a new six-year contract with John Deere, the company announced record profits of $5.96 billion during the fiscal year that ended on November 1.
Tyler Jett reported for the Des Moines Register on November 24,
The company announced Wednesday that the new contract with the UAW will cost $250 million to $300 million. J.P. Morgan analyst Ann Duignan wrote in a note that she expects Deere to increase prices by 1.5% to offset its higher pay to workers.
That cost estimate appears to cover the immediate 10 percent raises and $8,500 ratification bonuses for each of Deere’s approximately 10,000 employees represented by UAW. The range of $250 million to $300 million would work out to between 4 percent and 5 percent of the company’s profits for the fiscal year that just ended.
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