John Deere strike
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Started by wglassfo - Nov. 8, 2021, 9:58 a.m.

This is the second time rank and file have voted down a settlement offer by Deere, albeit this vote was much closer

So what will Deere workers accept on a new contract

Labor component of retail list price is 15 % so management should have room to pay up, especially when top dog earns 14 million and Deere has a very profitable bottom line for share holders

 average selling price of a machine is maybe 500,000 with 75,000  [15 % for labor]. Settle a new contract and increase retail price another 25,000  to 525,000 [approx] and I bet as many units would sell and workers get really good increase in pay. Brazil buys some industrial machines in 50 machine lots at a time, so the retail market is hot. It is not COP for machinery but what will the market pay. Same as F 150 trucks. It doesn't cost Ford 80,000 to produce a truck but the market will pay 80,000

Maybe give workers options to hold or sell same as top dog execs would be more fair

Workers are in drivers seat on this one

This settlement will have ripple affects all across manufacturing industry. My son has welders etc working in his shop, and once they hear what the new Deere settlement contract is, they will want raises to equal Deere workers.



Comments
By metmike - Nov. 8, 2021, 10:14 a.m.
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Thanks Wayne. Great to see you back.

By wglassfo - Nov. 8, 2021, 10:36 a.m.
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I might have got mixed up and this post is NTR

If so please move for me

By metmike - Nov. 8, 2021, 11:47 a.m.
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Wayne, 

I was the confused one and moved it to Trading but will move it back for you .

Sorry about that!

By cfdr - Nov. 8, 2021, 12:01 p.m.
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Hi Wayne.  This is, unfortunately, all part of the cycle.  It's coded in the algorithm in which we live, IMHO.  You've got management, investors, and labor - all competing for as much of the pie as they can get.  This is what lost a lot of the auto industry to first Japan, isn't it?  I talked to an insurance agent who said that he just insured his first million dollar combine (with two heads).

Again, unfortunately, there is nothing better than the marketplace to sort these things out.  Maybe China can do it better - we don't know yet.  But I doubt it.

Everything moves in cycles.

By TimNew - Nov. 8, 2021, 1:07 p.m.
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I'm sure Kubota is watching closely.