The contract, which covers 900 workers of the International Association of Machinists and Aerospace Workers (IAM) at the John Deere Horicon Works plant in Wisconsin, was passed with over 80% voting to ratify the deal. Terms were not disclosed.
The plant produces Deere’s Gator utility vehicle and lawn tractors.
The ratification comes at a time when unions, which are gaining popularity in the United States, are demanding better terms from companies after workers had to compromise on certain terms in the last few years.
Deere and the IAM did not immediately respond to requests for additional comment. The negotiations between the two parties began in July to replace the current agreement that expires on Saturday.
The company faced a strike last year when workers represented by the United Auto Workers (UAW) walked off the job for about six weeks, demanding better pay and benefits.
Deere, which had about 29,000 employees in the U.S. and Canada last year, has forecast fiscal 2022 profit of $7.0 billion to $7.2 billion.