(Updates with Deere's response in the fourth paragraph.)

Deere (DE) union workers rejected a proposal to extend their current contract by two years, setting the stage for contentious negotiations with the United Auto Workers in 2027, The Wall Street Journal reported Sunday.

According to the report, the proposal offered 4% annual raises and $3,000 bonuses, but UAW President Shawn Fain said it failed to address job security, outsourcing and the return of 1,600 laid-off workers.

Deere rejected the UAW's counteroffer, saying it would cost about $500 million more, while the current six-year contract expires in 2027, the report added.

In a statement emailed to MT Newswires, Deere said it was disappointed by the vote outcome, noting that the current agreement remains in place through October 2027. The company cited weak demand, about 1,200 production employees on layoff, intensifying competition and an uncertain recovery outlook as ongoing challenges requiring continued operational and strategic adjustments.

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