Deere Strike

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Rmc

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The employees may have the upper hand this time. Sounds like John Deere had the upper hand last time since the employees lost wages and benefits last time . Employees also have to calculate how much they can push before they are replaced.
I have been around and involved in the boom /bust cycle many times . Have seen the situation play out many times.
Boom is on so employees demand more and more. Management agrees or looks the other way at what would normally be a firing offense. Why because they need the employees.
Then the pendulum swings the other way. Any guess who are the first to be “let go” ? The ones who where the most demanding and caused the most problems ,issues.
Now way more available employees then positions . So the very next thing that happens is cut in wages and benifits. Then demand more of the employees that are left. Don’t like it to bad. The there are 10 guys willing to do it if you won’t.
Then eventually things even out and start to swing the other way.
Any guess whose employees are the first to jump ship . The ones who treated their employees like sh*t and paid the least.
To me that is the way the free market works .
Supply and demand .
No different to me when employees demand wage increase etc when they can
Then management cuting wages,benifits , jobs when they can.
 

Lee VanRoss

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I have some knowledge based on a personal relationship with Deere & Company. I also have a copy of Wayne Broehl's
book John Deere's Company autographed by some of the people that I had the privilege of working under and with as well
as peers in three different branches. I can assure anyone reading this, Big Redly does not.

During my tenure I served two terms as president of the local union and while I was privy to what transpired between the
union stewards and management at the local level I pretty much steered clear of the periodical discipline problems and
interdepartmental bickering that may have taken place. If my voice/vote was required I hope it can be reported that my
response was even handed and based on evidence presented.

Looking back at Deere & Company employment I would submit that it took (maybe still does) about 3 years to develop
the 'leaping deer' mindset. It is the mindset of while what takes place at work has its effect on what is possible at home
is only made possible by that person running the tractor (or any machine) long into the night well after you have gone to sleep.
Most ten year employees are well aware of the importance of the people who have enough confidence and trust in the
Company to invest their savings. There is a certain amount of satisfaction in knowing (in your own mind) that your engineers
and tool operators are considered among the best in the world.

One of the last things that I want in this working life is for a Deere & Company stockholder to feel that the employees at
any level take them for granted. I hold up Sears as an example of what I never hope to see. Would it surprise you to know
we are still using their washing machine!?

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Strike votes for the most part should be used only as a last resort because like any war it is easier to start than stop
and they have a tendency to go in a direction not planned.
 

Rmc

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I personally no longer buy the john deere cares deeply about the buyer or operator of there product. Actions speak louder than words. If they really understood the time sensative financial stakes of harvest. They wouldnt be pulling there "you cant fix your own tractor crap" for the opertunity to make a few bucks. Example John Deere tractor is baling hay. Derates because a fuel filter issue. Owner changes the filter but still cant get the tractor out of limp mode .why ? Because he has to contact the dealer and have a tech.come out to site to plug in his computer to take the tractor out of limp mode. The time delay could end up costing the operator $1000s of dollars profit. So how is it again that they care for those using their product. They are shooting themselves in the foot ,and have been for the last several years. My hope is that with the chip shortage ,some of this will force John Deere and otner companies to re evaluate their heavy reliance on foreign produced chips. Maybe use less chips per vehicle and bring at least some of the chip production home. Many companies made the choice to outsource chip production overseas to cut cost .Now the question they must ask is was the savings of outsourcing the chips worth the lost sales because of the shortage? Is the inventory just in time management of globally sourced components savings worth tne risk of shortages of one small component derailing the entire production .
 

HankHusky

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CEDAR RAPIDS, Iowa (KCRG) —
"This is probably the best bargaining position that John Deere has been in many years," Iowa State University economics professor Peter Orazem said. "I mean the company is doing very well and the company wants to be expanding and doesn't have enough workers"

John Deere is projected to earn $6 billion this fiscal year, which is a new record, shattering the previous revenue record set in 2013 by 61%. The company employs about 7,000 workers around Iowa.

More than 10,000 John Deere workers could go on strike for the first time in 30 years.

KCRG reports the United Automobile, Aerospace and Agricultural Workers (UAW) and John Deere were back at the negotiating table in Moline, Illinois, Monday.


This came after union members overwhelmingly rejected a new contract Sunday night with John Deere.

Approximately 90% of union members voted "no" to the tentative agreement reached, which was announced Friday. The tentative agreement came after an extension was announced in September to avoid the original Oct. 1 deadline.

UAW Local 838, based out of Waterloo, posted on its Facebook another extension will occur until Wednesday at 11:59 p.m. If there is no deal, a strike will begin at that time. It would be the first strike since 1986, which lasted more than five months.

Orazem said strikes have become very uncommon, especially during economic slowdowns, and that the current situation is different because employees have more leverage due to labor shortages.

 
OP
HDRider

HDRider

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They did it -

New York (CNN Business)About 10,000 members of the United Auto Workers union went on strike against farm and construction equipment maker John Deere early Thursday morning.

The UAW had reached a tentative agreement on a new six-year contact with the company two weeks ago, only to see 90% of the rank-and-file members of the union reject it in a ratification vote that concluded this past Sunday. Union and management negotiators talked into the night Wednesday trying to reach a new deal but were unable to do so.
 

Lee VanRoss

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To my knowledge the bulk of the hourly Deere & Company employees have never been through a strike.
I hope they reach the most equitable solution available in a minimum of time.
To that end I am most optimistic for as you may have heard, Nothing runs like a Deere !
 

Stocker Steve

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They did it -

New York (CNN Business)About 10,000 members of the United Auto Workers union went on strike against farm and construction equipment maker John Deere early Thursday morning.

The UAW had reached a tentative agreement on a new six-year contact with the company two weeks ago, only to see 90% of the rank-and-file members of the union reject it in a ratification vote that concluded this past Sunday. Union and management negotiators talked into the night Wednesday trying to reach a new deal but were unable to do so.
Did you place your limit orders?
 

shaz

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I personally no longer buy the john deere cares deeply about the buyer or operator of there product. Actions speak louder than words. If they really understood the time sensative financial stakes of harvest. They wouldnt be pulling there "you cant fix your own tractor crap" for the opertunity to make a few bucks. Example John Deere tractor is baling hay. Derates because a fuel filter issue. Owner changes the filter but still cant get the tractor out of limp mode .why ? Because he has to contact the dealer and have a tech.come out to site to plug in his computer to take the tractor out of limp mode. The time delay could end up costing the operator $1000s of dollars profit. So how is it again that they care for those using their product. They are shooting themselves in the foot ,and have been for the last several years. My hope is that with the chip shortage ,some of this will force John Deere and otner companies to re evaluate their heavy reliance on foreign produced chips. Maybe use less chips per vehicle and bring at least some of the chip production home. Many companies made the choice to outsource chip production overseas to cut cost .Now the question they must ask is was the savings of outsourcing the chips worth the lost sales because of the shortage? Is the inventory just in time management of globally sourced components savings worth tne risk of shortages of one small component derailing the entire production .
RMC, it's not a matter of chip hardware. We're talking about basic micro-controllers and there are many brands. It's a software problem by design. Changing to a different CPU just means the code has to change but the effect will be the same as far as the end user is concerned.
 

Rmc

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They are two totally different issues . John Deere designed their system to go into limp mode to make a few more bucks at the possibility of costing the user $1000s of dollars in lost value of product. That is why I don’t buy into John Deere’s claim to care about the user.
“Nothing runs like a Deere “ unless it’s in limp mode when it will barely run at all .
But you can’t tell me that the current overseas chip shortage , They fact that you have container ships anchored for two months before being able to get unloaded , air freight taking four weeks and it costing $10000 for a single pallet From China to its us destination. Hasn’t caused John Deere and others to reevaluate the cost of relocating production overseas. And was not considered by John Deere’s employees. Those facts make it a little harder for John Deere management to move all production over seas .
It is also forcing John Deere and many other companies to reevaluate there “just in time inventory “ strategies
 

shaz

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They are two totally different issues . John Deere designed their system to go into limp mode to make a few more bucks at the possibility of costing the user $1000s of dollars in lost value of product. That is why I don’t buy into John Deere’s claim to care about the user.
“Nothing runs like a Deere “ unless it’s in limp mode when it will barely run at all .
But you can’t tell me that the current overseas chip shortage , They fact that you have container ships anchored for two months before being able to get unloaded , air freight taking four weeks and it costing $10000 for a single pallet From China to its us destination. Hasn’t caused John Deere and others to reevaluate the cost of relocating production overseas. And was not considered by John Deere’s employees. Those facts make it a little harder for John Deere management to move all production over seas .
It is also forcing John Deere and many other companies to reevaluate there “just in time inventory “ strategies
Yep, the longer the supply chain the more screwed up it is right now. I can't believe the port of LA just now figured out they need to work 24-7. You would think that would be obvious. This shipping problem is not new.
 

dcarp

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Moving back to the original post. Deere’s CEO John May received total compensation of $5 million in 2019, in 2020 $14.8 million. Deere’s net revenue in 2020 $114 billion. I think the workers are justified in wanting more than 5-6% pay increase. Especially since they took a pay cut in the last contract.
 

Stocker Steve

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If Deere can not get enough employees in Iowa, you would think that they would be very generous with their employee contract offer.

That said, I assume they make most of their tractors overseas, and just make the supersized US focused models here?
 

D2Cat

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To my knowledge the bulk of the hourly Deere & Company employees have never been through a strike.
I hope they reach the most equitable solution available in a minimum of time.
To that end I am most optimistic for as you may have heard, Nothing runs like a Deere !

Lee, I heard it this way. "Nothing runs like a Deere, being chased by a Cat!" ;)
 

Rmc

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With over 90%of the rank and file voting to reject the contract John Deere may be looking at a bigger issue then just wages with its employees.
90% against is amazing to me . They either have a employee management issue or pushed way to far in conssions of employees. I don’t know of anywhere where you could get 90% of 10000 people to agree on much of anything right now in the US.
 

shaz

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With over 90%of the rank and file voting to reject the contract John Deere may be looking at a bigger issue then just wages with its employees.
90% against is amazing to me . They either have a employee management issue or pushed way to far in conssions of employees. I don’t know of anywhere where you could get 90% of 10000 people to agree on much of anything right now in the US.
I don’t think it would kill John Deere to offer some stock to the employees. Dilutes shares but it’s not debt
 

Dsth

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I personally no longer buy the john deere cares deeply about the buyer or operator of there product. Actions speak louder than words. If they really understood the time sensative financial stakes of harvest. They wouldnt be pulling there "you cant fix your own tractor crap" for the opertunity to make a few bucks. Example John Deere tractor is baling hay. Derates because a fuel filter issue. Owner changes the filter but still cant get the tractor out of limp mode .why ? Because he has to contact the dealer and have a tech.come out to site to plug in his computer to take the tractor out of limp mode. The time delay could end up costing the operator $1000s of dollars profit. So how is it again that they care for those using their product. They are shooting themselves in the foot ,and have been for the last several years. My hope is that with the chip shortage ,some of this will force John Deere and otner companies to re evaluate their heavy reliance on foreign produced chips. Maybe use less chips per vehicle and bring at least some of the chip production home. Many companies made the choice to outsource chip production overseas to cut cost .Now the question they must ask is was the savings of outsourcing the chips worth the lost sales because of the shortage? Is the inventory just in time management of globally sourced components savings worth tne risk of shortages of one small component derailing the entire production .
I often wonder how many tractors JD would sell if they did a reproduction of some of the 40 or 50 series tractors like the 4440 that were pretty much all mechanical operated and self maintained by most that owned them.
 

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