The John Deere Strike

[PTmowerMech]

The John Deere Strike Shows the Tight Labor Market Is Ready to Pop

SHORTLY BEFORE MIDNIGHT on Wednesday, production workers at a John Deere facility in Waterloo, Iowa, started shutting down the plant, quenching the furnaces in the foundry. The plant was already mostly empty, with Deere telling overnight workers to stay home. Three days earlier, union members at United Auto Workers meetings in Iowa, Illinois, and Kansas had voted overwhelmingly to reject a proposed contract that gave subinflation raises and eliminated pensions for all new hires. The rejection came as a surprise to both the union leadership and the company; even some of the workers who had voted no and authorized a strike were surprised that it was actually happening. The 10,000 workers who walked off the job are striking Deere for the first time in 35 years. “Just confirmed Waterloo has their picket signs,” one worker said before the strike began. “Shit’s about to get real.”

 

[StarTech]

I reckon that means I will be seeing more in the line of repairs here and the after market suppliers will see more in sales.

Repairs here on JD equipment has down as far parts purchases from JD Deere owned companies even though the actual repairs and parts sells are about the same if not up a little.

Local JD dealer purchases last three years


A&I ( JD owned company)


If you look at your JD dealer's lot you probably see the same as I do here where there is less half the new equipment that is normally there before the pandemic hit.

One side effect of the strike is that it going to make farmers to consider have other brands in their equipment mix as they depends of the OEMs supplying repair parts when needed. They simply cant have equipment down for months on end when crops are ready to harvested. Right now here they are harvesting corn and cotton with soybeans nearing harvest too.

 

[bkeller500]

It's unfortunate that JD and their employees are at this stage. I am all for a company to make reasonable profits and I certainly am all for employees to get paid properly for their efforts in making that company profitable. They need each other to survive yet at times like these the hate and nastiness comes out. I hope they can come to a rapid settlement. But on a bigger scale I ask is this a sigh of what is coming? Are companies and employees ( union or not) on a collision coarse due to covid slowdowns and the broken supply chain? This could be the beginning of a long list of interruptions of American manufacturers making good for the global market and not just for America. Rebuilding the American industrial structure is going to be painful. Bringing global independence will be the talking point for rebuilding our economy. Our Car dealerships are very short on inventory as well as our Ag dealers. Trucks are in short supply. Our entire economic system will be under constant stress for a few years.......not weeks or months. America is going to pay back for the benefits and sins of embracing China and Mexico so heavily.

 

[PTmowerMech]

Corporate level's bottom line, to make money. In doing that, it's to reduce overhead as much as possible. This improves the reputation of the company to it's investors. It also makes for much larger bonuses. Business 101.
Blue collar level: To get as much of the companies profits in their pocket.

End result. If the overhead is too much in the USA, they move their manufacturing and assembly to Mexico or China.

Bottom line. Corporate execs don't care too much about the blue collar levels. Blue collar levels don't care much about the execs.

It's a dog eat dog world, And everyone is wearing milk bone underwear.

 

[bkeller500]

Corporate level's bottom line, to make money. In doing that, it's to reduce overhead as much as possible. This improves the reputation of the company to it's investors. It also makes for much larger bonuses. Business 101.
Blue collar level: To get as much of the companies profits in their pocket.

End result. If the overhead is too much in the USA, they move their manufacturing and assembly to Mexico or China.

Bottom line. Corporate execs don't care too much about the blue collar levels. Blue collar levels don't care much about the execs.

It's a dog eat dog world, And everyone is wearing milk bone underwear.

nicely said........I have to ask though...........If you owned a company, what would you do? If you ever get an opportunity to build a company from scratch or to purchase a existing company, do so. It will give you a new perspective on company profitability, taxes and employee benefits.

 

[PTmowerMech]

nicely said........I have to ask though...........If you owned a company, what would you do? If you ever get an opportunity to build a company from scratch or to purchase a existing company, do so. It will give you a new perspective on company profitability, taxes and employee benefits.

I'm not really the greedy sort. And always been proud of myself when I gave people tips and extra money for doing a good job. But there are times when I do get a little greedy. As in when I'm in the process of buying something I really want.
So it's hard to say, honestly.
I'd like to think I'd pay my employee's enough so that we all could live comfortable and have a few nice things. I don't think I'd want to drive lambo's or living in a mansion.
Another thing to consider is that for some reason, when you're generous to some folks, they tend to expect it. And when it's doesn't rise to their expectations, they tend to talk about it, and get others wound up about higher expectations. This is what unions do.

 

[bkeller500]

I'm not really the greedy sort. And always been proud of myself when I gave people tips and extra money for doing a good job. But there are times when I do get a little greedy. As in when I'm in the process of buying something I really want.
So it's hard to say, honestly.
I'd like to think I'd pay my employee's enough so that we all could live comfortable and have a few nice things. I don't think I'd want to drive lambo's or living in a mansion.
Another thing to consider is that for some reason, when you're generous to some folks, they tend to expect it. And when it's doesn't rise to their expectations, they tend to talk about it, and get others wound up about higher expectations. This is what unions do.

I have enjoyed both working for a company for 45 years and also joint ownership of my own company with my wife for 25 years. I saw the benefits and the issues from both sides. I had employee's and I was one at the same time. I learned (like you ) that there has to be a benefit for both sides and a willingness to work together to survive together. At times my employer was both stingy and frugal as well as generous and understanding. As an employer I tried to do the same. The issue gets complicated when you have some employees that do not have a full understanding of economics. For the most part I still do not think companies are out to screw their employees. No employer is trying to get work done for nothing. And I have seen where a employee wants to get paid for doing nothing. My very first employer during high school told me to learn some skills and make myself more valuable. If and when I feel I can advance and grow as a employee to go ahead and do so even if it means leaving the company. He encouraged me to grow as a person and as a employee, and if I need to leave, then leave on good terms and make room for the next guy.

 

[StarTech]

You might leave on good terms with a 2-3 week notice of departure but the same employer might not give you a notice if you happen return to work for them. I had one that I gave 3 week notice to after working for him 8 years. I gone for 8 years and went back to work for him. First he acted like he never knew me and after three weeks of working under highly secretive service department work orders was abruptive laid off on payday as I received my paycheck. A very hateful way to do a good employee that just wanted to work locally again.

I did tell him that with his attitude that he probably be out of business within the year and he was.

 

[bkeller500]

I have enjoyed both working for a company for 45 years and also joint ownership of my own company with my wife for 25 years. I saw the benefits and the issues from both sides. I had employee's and I was one at the same time. I learned (like you ) that there has to be a benefit for both sides and a willingness to work together to survive together. At times my employer was both stingy and frugal as well as generous and understanding. As an employer I tried to do the same. The issue gets complicated when you have some employees that do not have a full understanding of economics. For the most part I still do not think companies are out to screw their employees. No employer is trying to get work done for nothing. And I have seen where a employee wants to get paid for doing nothing. My very first employer during high school told me to learn some skills and make myself more valuable. If and when I feel I can advance and grow as a employee to go ahead and do so even if it means leaving the company. He encouraged me to grow as a person and as a employee, and if I need to leave, then leave on good terms and make room for the next guy.

Like they say " not all is fair in love and war". We humans can choose to be kind or cruel.........and it is a choice!

 

[bertsmobile1]

I am amazed at just how badly US workers are paid & the conditions they work under
However nothing has really changed since the days of slavery except the "slaves get a little more money" but it is nearly always the least then can possibly be paid .
Then there is the imported UK class attitude of we the superiour managers vs them the inferiour workers.
If you did an MBA then they are not even workers, they are taught to think of the employees as just another "Variable production input " which of course make it easier to act in an inhumane way towards employees as they are not people any more.
The MBA's who end up running the company are brainwashed into the belief that "All Profits Originate in the Board Room " .
Thus again the workers are some sort of sub human autotrons .
We have exactly the same attitude down here
When I was in the metals industry I can not remember a single manager who did not blame "excessive labour rates" as the prime reason for lack of profits.
At a conference I once got brave enough to suggest that it could be lack of investment in more efficient equipment equipment that could increase the productivity per man hour that was the problem & I got booed & heckled by the other delegates.
I had just come back from Japan & found that the japanese workers were actually paid more than the Aussie workers but their outputs was between 5 to 100 times higher because there was no machine on the floor that was older than few years.
Down in OZ we were still using stuff imported second hand from the UK & USA during WW II in the days when machines were expensive & labour was cheap ( & disposable )
It was over a year before I was allowed to attend another conference , my applications would always be returned claiming that the conference was full .

There is a reason why Germany is the powerhouse of EU manufacturing , because they actually do value their employees & engage with them at all levels of management.
VW & BMW both have directors who come off the shop floor and are voted in by the shop floor .

The total contempt towards workers was blaitently displayed by B & S who shifted their manufacturing to NY purely because the labour rates are 3% to 11% lower in NY .