Deere & Co., Moline, Ill., and United Auto Workers have come to a tentative contract agreement that creates a new employer contribution and increases Deere's matching contribution to its union 401(k) plan.
The agreement is pending ratification, said UAW spokesman Brian Rothenberg in an email.
The agreement would create a new employer contribution of 5% of an employee's annual wages, according to a summary of terms provided by Mr. Rothenberg. Also, he said the agreement would increase the matching contribution to 100% of employee contributions of up to 6% of wages for 2022, and afterward match between 70% and 100% of employee contributions of up to 6% of wages, depending on company profits.
Current employees hired after Oct. 1, 1997, and future employees would have the choice of entering the Deere & Co. hybrid defined benefit/defined contribution plan or the newly enhanced 401(k) plan, the summary said. The summary did not provide further information on the nature of the future employees.
Mr. Rothenberg would not provide further information.
According to Deere & Co.'s most recent 11-K filing for its John Deere Tax Deferred Savings Plan for Wage Employees, as of Oct. 31, 2020, the company currently provides a matching contribution to employees hired Oct. 1, 1997, of generally equal to 60% of employee contributions of up to 6% of wages. Exceptions are 50% for John Deere Horicon Works employees hired prior to Oct. 1, 1998, 65% for John Deere Horicon Works in Wisconsin employees hired on or after Oct. 1, 1998, and 75% for John Deere Commercial Products employees. No stand-alone contribution is mentioned in the 11-K filing.
Also as of Oct. 31, 2020, the John Deere Tax Deferred Savings Plan for Wage Employees had $1.1 billion in assets.
