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John Deere increases wages for non-union workers

The company's non-union salaried employees will reportedly receive an 8% pay raise.
Credit: Ingest
John Deere

MOLINE, Ill — An accepted third offer brought an end to a five-week strike, and UAW members will see pay increases and bonuses over the next six years. Now, John Deere's non-union employees will reportedly see a bump in their paychecks as well.

The 35-day union worker strike left Deere shorthanded, forcing an all-hands-on-deck approach to keep production running without UAW workers.

Salaried staff such as supervisors, engineers and financial service employees stepped up to the lines as the company was exploring options to reach an agreement with its union workers.

According to the Des Moines Register, Deere announced on Tuesday, Nov. 23 that salaried staff would receive 8% raises.

"John Deere is wrapping up an extraordinary year despite facing some of the most challenging operating conditions in recent history," Deere & Co. spokesperson Jennifer Hartmann said. "Through it all, our employees’ hard work, persistence, and commitment to each other, and to those we serve, were key to this exceptional performance."

RELATED: Done deal: UAW accepts latest offer on Day 35 of John Deere strike

"The future success of our company depends on our ability to retain and recruit the best talent in an increasingly competitive global marketplace," Hartmann said in a statement. "To do that, we’re committed to putting every one of our employees in a better economic position." 

RELATED: John Deere strike: What's included in the third offer?

While the pay raise for non-union employees helps level the playing field, it is hard to compete with the new benefits union members received under the third agreement.

The new agreement gave union members an immediate 10% raise, followed by a 5% raise on the third and fifth years of the contract and lump sump bonuses on the second and fourth years. 

Changes in the deal also included Deere's quarterly incentive program, known as "Continuous Improvement Performance Plans." Under CIPP, employees are eligible to receive 5% more on weekly bonuses if a certain threshold of productivity is met.

In August, Deere executives told analysts that they expect the company to earn a record $5.7 to $5.9 billion in the fiscal year. This would be 62% above Deere's 2013 profits, their current record year, according to Des Moines Register.