John Deere: Workers strike after rejecting wage agreement

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Two weeks ago, the American Auto Workers Union reached a preliminary agreement on a six-year new contact with the company, but in the approval vote that ended last Sunday, 90% of ordinary members of the union rejected the agreement. On Wednesday night, the union and management negotiators tried to reach a new agreement, but failed.

This is the largest private-sector strike in the United States since the U.S. Auto Workers’ Union (UAW) carried out a six-week costly strike. General Motors (General Motors) Two years ago. As the dynamics of the labor market tend to lean toward them and move away from employers, it continues the recent trend of workers showing more power. Companies have been struggling to find the workers they need to fill recent record vacancies. The number of workers who resigned also hit a record high.
Last week, 1,400 members of the International Union of Bakeries, Candy Stores, Tobacco Workers and Grain Processors went on strike against Kellogg’s, shutting down the production of grains such as rice crackers, raisin bran, Froot Loops, corn flakes and frosted flakes. Brand factory.
Earlier on Wednesday, the International Theatre Stage Employees Union, which represents entertainment industry technicians, artisans and artisans, announced that it had set the strike deadline on Monday morning if possible. No new contract for 60,000 film and television workers has been reached with the League of Film and Television Producers. The union stated that if there is no new agreement by then, 98.6% of its members have voted to approve the strike.

However, the US Department of Labor reports that compared with the same period in 2019 (the year before the Covid-19 pandemic angered the labor market), the number of strikes so far this year has actually decreased.

Overall wages have risen because it seems that unionized and non-unionized employers are more willing to provide workers with what they want to keep working.

Deere’s good time

The strike of Deere & Co. (the company’s official name is John Deere Company) resulted in the closure of 11 factories in Illinois, Iowa, and Kansas, and three distribution centers in Georgia, Illinois, and Colorado. The company produces agricultural and construction equipment. The demand for its products has been strong.

The company said in August that orders will continue to grow for the remainder of the fiscal year (that is, November 1) and the first fiscal quarter of next year.

The rejected contract of John Deere’s UAW members will immediately increase their basic salary by 5% to 6%, and the additional salary at the end of the contract may increase the average salary by about 20% in six years. Rejected transaction. It also eliminated the second lower level of compensation for some of the company’s newer employees, making them the same as other UAW members.

Kellogg's strike: 1,400 grain factory workers strike the picket line

Deere’s average production worker earned approximately US$60,000 last year, and may receive approximately US$72,000 when the contract ends.

One of the characteristics of rejected contracts is the restoration of cost-of-living adjustments-once a common feature of union contracts, it has become rare in recent years. But when the inflation rate reaches levels not seen in decades, this may be profitable. It also includes improvements to benefits, including retirement bonuses of up to $50,000.

But unlike Deere’s last two UAW contracts, these contracts were negotiated during the company’s difficult times, and these negotiations were conducted at a particularly good time for the company.

This may make it more difficult to reach an agreement agreed by the members. Deere’s current financial success may lead some union members to believe that they deserve a better plan than the rejected plan, especially after lower-margin deals in the past.

Deere’s revenue in the first three quarters of the fiscal year increased to 32.7 billion U.S. dollars, an increase of 11% over the same period in 2019 before the pandemic. Net income soared to a record US$4.7 billion, a year-on-year increase of 84%. The company was able to do this while dealing with many of the supply chain issues that plagued the automotive industry, and was able to increase its full-year profit forecast to as high as $5.9 billion.

The company has also been hiring last year because since November 1, 2020, the number of jobs for Deere union representatives has increased by 19%.

Shares Dier (From) It has risen 23% so far this year, although Wednesday’s closing price is 16% lower than the stock price in early September.
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