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The UAW and Deere are barreling toward a contract clash as Big Labor seeks to capture some of the immense wealth being created by the AI boom.
Why it matters: Old-school equipment makers like Deere and Caterpillar suddenly find themselves swept up in a sales-and-stock boom tied to AI, as data center developers gobble up bulldozers, excavators and other construction machines.
The big picture: Union leaders have already been agitating against the AI giants, calling for labor protections and bashing billionaires for seeking to replace workers.
"You're either with workers or you're with millionaires," AFL-CIO president Liz Shuler told Axios in June. "There's just been a dearth of leadership in terms of elected officials really prioritizing this and putting workers at the center."
The latest: The UAW announced late Sunday that its members had rejected a Deere contract offer, which would've extended its current collective bargaining agreement for two years, through 2029.
The extension would've included a 4% annual wage increase and $3,000 bonuses each year, plus no changes to pensions and health care.
UAW president Shawn Fain blasted Deere for laying off workers and signaled the union wants a more lucrative deal now that the company's fortunes have improved.
"Our members rejected Deere's offer to extend their contract because they know their worth and what they deserve," Fain said in a statement. "The company failed to make an offer that addressed the issues weighing on the minds of our members, especially job security. We'll see Deere at the table in 2027."
The other side: Deere said that it's "disappointed" by the vote and that it expects to return to negotiations before its contract expires in October 2027.
"We proposed the extension because we believe added stability and certainty would benefit our employees, customers and business in a challenging environment," Deere said in a statement.
Zoom in: Deere's stock price has soared 40% in 2026 as the company finds itself at the center of the AI trade.
The company reported last week that sales jumped 18% in its construction and forestry segment from a year earlier to $3.62 billion.
Operating profit in the segment also soared 84%, while operating margin spiked to 12.1% from 7.7%.
Deere said in its statement Monday that overall "demand remains well below 2021 levels" and that "competition continues to intensify," while "the outlook for a significant recovery remains uncertain."
The intrigue: Fain — who is running for reelection as president of the UAW this year — has reportedly been discussed as a possible dark-horse candidate for president of the United States in recent months.
He rose to prominence in the labor movement in 2023 when he led an unprecedented strike against General Motors, Ford and Stellantis that culminated in record pay increases.
At Deere, "I think they're going to learn that he bargains hard and he has a lot of people behind him," Arthur Wheaton, director of Labor Studies at the Cornell ILR Buffalo Co-Lab, tells Axios. "And it's an election year — the last thing he wants is a soft contract."
💭 Our thought bubble: Big Labor is scrambling to present a counterforce to the powerful AI giants — and since none of the Big Tech companies are broadly unionized, the labor movement's most realistic chance might come in the equipment production sector.
What to watch: Any halt to the availability of equipment could present a serious bottleneck to AI data center construction — especially considering that Deere and Caterpillar are already experiencing order backlogs.
New Balance is bringing back the 992 silhouette in a Light Arctic Grey Black and Blue Gemstone colorwayThe unisex Made in USA model reproduces core performance tech including ABZORB SBS cushioning TS2 support and N-durance rubberThe sneaker is scheduled to officially release in 2026
Name: New Balance Made in USA 992Colorway: Light Arctic Grey/Black/Blue GemstoneSKU: U992ARMSRP: $270 USDRelease Date: Fall 2026Where to Buy: New BalanceNew Balance is bringing back its classic Made in USA 992 in a "Light Arctic Grey/Black/Blue Gemstone" palette. First created in 2006 as the successor to the 991 to commemorate New Balance's 100th anniversary, the unisex runner returns with faithful attention to its original technical specifications.Dressed in a cool-toned blend of light arctic grey, black, and blue gemstone accents, the upper pairs premium material paneling with a breathable mesh base. The design maintains the classic 99X series lines that transitioned the model from a performance running sneaker into a lifestyle staple.Underfoot, the reissue reproduces its original performance tooling. An ABZORB SBS midsole provides shock absorption, rebound elasticity, and durability, while TS2 technology aids smooth foot transitions during movement. An N-durance rubber outsole rounds out the construction to provide maximum abrasion resistance in high-wear areas.The New Balance U992 AR "Light Arctic Grey/Black/Blue Gemstone" Made in USA is scheduled to release in 2026 via New Balance and select retailers.
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