Over 1,000 workers recently lost their jobs at John Deere thanks to a sudden bout of layoffs and early retirement. The company’s Illinois and Iowa plants were the most affected, as inflation is forcing the relocation of their production activities to Mexico.
Many have lamented how the relocation might harm the local economy and the affected employees.
A Company That Has Grown With Industry
John Deere has been operating in the United States for almost two centuries. The company is prolific for the quality of its farm machinery and implements. John Deere has also branched into the manufacture of construction and heavy-duty equipment.
During a recent interview with The Guardian, an employee of the Harvester Works plant attributed the John Deere layoffs to greed.
Worker Cuts in the Face of Burgeoning Profits
The comment by the Harvester Works employee refers to how John Deere’s economic realities do not justify the layoffs. There is a claim that the equipment manufacturer earned about $10 billion in the previous fiscal year.
So, pundits believe the layoffs are unnecessary since John Deere’s business is still very profitable.
Pay Disparity in a Company With a Layoff Crisis
Another point of criticism of the recent layoffs at John Deere is the eye-popping remuneration of the company’s CEO. Last year, CEO John May went home with $26.7 million.
So, many are dissatisfied with a single individual going home with that much when the company is actively downsizing. The speculation of more layoffs doesn’t end there.
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Job Loss Fear Stoked Up
A wave of fear is currently sweeping through the ranks of John Deere staff, as no one knows who will be the next person to be fired. As a result, workers’ confidence in their job security has tanked significantly.
When asked about the climbing spate of anxiety for John Deere workers, one anonymously said, “We get wind of more layoffs daily, it seems, and it’s causing uncertainty all over.”
Historic Growth of the Equipment Company
John Deere is one of those companies that have stood the test of time. It has come out of economic recessions, in-house and global, with a spring. It may come as a shocker that John Deere started as a manufacturer of steel plows.
Today, the company is a global behemoth, with facilities in some 109 locations around the globe.
How an American Company Can Become Unpatriotic
John Deere’s relocation of manufacturing facilities to another country has caused many to question its patriotism. Those in this school of thought feel that being a company of American roots, John Deere ought to seek out the greater good of its constituents.
Unfortunately, John Deere is the largest employer of labor in many communities in the Midwest.
Layoffs Are Affecting the Local Economy
Families and local businesses are tied to many of the jobs John Deere took away. So, many communities will inevitably feel the impact of the loss.
Quentin Hart, the mayor of Waterloo, further underscores the impact of the John Deere job losses by saying, “Any time you have a major employer initiate layoffs, it’s a challenge for the local community.”
Intervention of Local Unions in the Ongoing Layoffs
Union leaders are not keeping quiet about the ongoing layoff crisis. Tim Cummings, a unionist, has officially called for John Deere to reconsider the motivations behind its outsourcing strategy.
Cummings, the president of the Local 838 union circuit, said on KWWL news, “I urge John Deere to stop outsourcing, bring these products back to our factories, and allow our talented workforce to produce these products at home.”
Retire Early or Suffer Outright Job Loss
With the prevailing wave of job insecurity, about 103 workers at John Deere’s Ottumwa plant have opted for an option of early retirement with compensation. However, workers in some other local facilities were not so lucky.
For example, John Deere’s Ankeny facility cut 150 jobs, 500 lost their jobs at the Waterloo facility, and 650 in Iowa.
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Layoffs and the Local Economy
Chris Laursen was one of John Deere’s employees who opted for the early retirement package. He spent 22 years with the company and worked at the Ottumwa plant. Last year, John Deere laid Laursen off, but the local union fought for his reinstatement.
Reflecting on what would become of Ottumwa after John leaves, Laursen said, “Losing John Deere would be an extremely big loss.”
John Deere Justifies Its Layoff Decision
Despite all the criticisms that have rained in the direction of John Deere, the company retains its stance and fingers escalating manufacturing costs as responsible for the relocation of manufacturing activities.
John Deere’s higher-ups claim that its outsourcing strategy would keep it globally competitive. However, that has not saved the company from criticism.
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