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Deere Labor Contract


DOCTOR EVIL
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     SON worked at Deere Davenport Works for 10 years,  most of that time assembling the bolt-on stuff onto road graders like the big center blade, scarifiers, rippers,  front push blocks for loading dirt pans, and snow plow lights.  He did get qualified and run the test station for 6 months, and was vacation fill in till he passed his test to become an inspector and started inspecting endloaders the last year he was there.  He left for a new job just over a year ago,  BEST thing he's ever done!

    He still keeps touch with several of his old coworkers.  They are NOT happy. Deere has had really really good paid employee insurance for 50-60 years but they have decided to NOT PAY for employee insurance effective this contract starting 10-1-21.  It would be a payroll deduction each paycheck I'm sure. Deere could be on strike for a long l-o-n-g time.  Their last contract 6 years ago was poor, not as good as the prior contract.

   Six years ago every Deere dealer lot I saw was cram-packed full of equipment. Now days they're mostly empty. They could possibly stay that way for a while.

   I really hope Deere is not successful taking this benefit away from their hourly employees.  They Did take the paid medical benefits away from their retirees several years ago. That ended up in court.  If Deere is successful you can bet other companies will try to take benefits away too.

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Might be a brinkmanship game by Deere. 
Labor pool is tight I would think they are aware of that. I pay their stupid high prices for equipment so I know they aren’t hurting. 
with a $8 billion back log seems odd . Maybe they have a back room full of bots.🤷🏼‍♂️

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I would be upset if I was the employee and I suddenly took a pay cut due to loss of company paid insurance.  I'm very close to Waterloo and John Deere is currently advertising on TV for employees, I have never seen that before.  I can't imagine they would do something like that with the current difficulties with labor.

I also know several farmers who are retired John Deere workers.  A couple I can think of have been retired for 20+ years and are still getting a substantial pension.  I can't imagine what the way they used to pay is sustainable.

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37 minutes ago, nomorejohndeere said:

It shouldn't be any more business what health insurance an employee has any more than it is their home or auto insurance.

Bunch of spoiled azz employees need to get a grip.

 

 

You know not of what you speak. 

In any contract with any company no one knows what the final offer is until the negotiators and company come to a tentative agreement and presents it to the work force. 

Was a recent article claiming last 1/4s profit was enough to pay every employee world wide 160,000 per year. Iirc. Haven't verified those figures but a lil perspective there. 

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1 hour ago, iowaboy1965 said:

You know not of what you speak. 

In any contract with any company no one knows what the final offer is until the negotiators and company come to a tentative agreement and presents it to the work force. 

Was a recent article claiming last 1/4s profit was enough to pay every employee world wide 160,000 per year. Iirc. Haven't verified those figures but a lil perspective there. 

Was that gross profit or net? Often it's not what it seems. For example if the CEO of Walmart was to work for free for a year with all pay and bennies going to the employees it would amount to about 10 dollars for the whole year.

Rick

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"The company owes us that and more" I always called it the "big town" mentality because it's usually the people that work in town that think that way. 

When I was growing up, dad worked at a ship yard and farmed part time. The yard had a contract with the military. Times were good in the 80s due to the cold war.  Times changed, the cold war ended and the contract was scrapped, the yard shut down and the whole workforce was laid off. It made for some really hard times for a few years and dad ended working any job he could find and eventually ended up having to sell the farm. In the mid 90s the shop yard got some new contracts and dad got called back and times were good again. A few years went by and contract negotiations came up and the workforce went on strike. I was dumbfounded, didn't these people remember what it was like a few years back when the yard was shut down.

I'm sure Deere employees make a good wage. They probably would still do ok if they had to chip in for insurance. 

Don't bite the hand that feeds.

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How many people get paid health insurance in retirement and don't have to contribute to their insurance premiums while working.  I don't know of any employers around here that cover things to that extent.

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Deere has a two tiered pay scale, Pre-1986 hires had the old pay scale, Post '86-'87 hires have a much lower pay scale. Deere had a strike in '86/'87 that was actually longer than IH's big strike of '79/'80,  Deere's strike cost them over $100 MILLION.  Dozens of places in the Quad-Cities pay more than Deere's post-86 contract.  It really hurts to work next to an Old Timer doing the same job/work making $30/hr while your post '86 wage is around $15/hr.  The UAW is really ineffective at Deere, as long as the stewards and committeemen and business agents can clock out on Union Business and sit around they could care less about anything.  Iowa is a Right to Work state, you CAN opt out of the union but that normally doesn't turn out well either.

   If you don't appreciate the value of major medical insurance, you must be young, 25 to 50 yrs. Wait till you get older and see how high medical bills can be! In 2014 I finally got professional eyecare, was diagnosed with cataracts in both eyes,  think the surgery was around $30,000/eye. Then about first week of March I got chest pains one evening, Monday Night, Went to hospital about Midnite, tests all day Tuesday, few more tests Wednesday, Thursday was a rest day, Friday morning I had TRIPLE BYPASS surgery, woke up Saturday, or maybe it was Sunday, came home Monday.  I can't break all that expense out separate, but MY medical expenses for the year was just over $350,000.

   THAT'S why you have to have major medical insurance.

   My Cousin's oldest son when he was about 14-15 yrs old wiped-out on his Honda ATC-90 and was in a coma for 6 weeks.  My cousin didn't have ANY insurance.  Cost my Uncle one of his farms!  The Hospital was going to get it's money from where it could.

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2 hours ago, nomorejohndeere said:

I know I'm self employed and buy my own benefits with what I make.

It gives me a crystal clear perspective.

 

Give you crystal clear perspective on your situation.  Walk a mile in the other guys shoes.

So you mean to tell me if your kids, brother, sister uncle whatever got a job at John deere you would consider them spoiled azz workers just cause they got health insurance?  Really?

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1 hour ago, oldtanker said:

Was that gross profit or net? Often it's not what it seems. For example if the CEO of Walmart was to work for free for a year with all pay and bennies going to the employees it would amount to about 10 dollars for the whole year.

Rick

I dont recall, the article was a few days ago. I also don't know if I trust the motives of the writers but it was just a lil something to think about. Big companies like to blame labor for all their woes but there is way more to the story.

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11 minutes ago, iowaboy1965 said:

Give you crystal clear perspective on your situation.  Walk a mile in the other guys shoes.

So you mean to tell me if your kids, brother, sister uncle whatever got a job at John deere you would consider them spoiled azz workers just cause they got health insurance?  Really?

The whole issue of having "benefits" offered by employers started long ago and is a part of the system now.  People are accustomed to evaluating these things as part of their employment.  As are employers.

Same could be said for retirement.  It's really none of a companies business if you have that covered for yourself or not.  

My comment extends to all employees.  

Walk a mile in an employers shoes....................

I'm not saying JD employees don't deserve a raise or it's time for one.  I'm not holding anybody back.

The management of insurance should be the burden of each individual independent of their employment,  NOT intermixed where it eventually leads to problems/leverage/topic for discussion for one side or the other.

The very fact that this thread was started on the subject is an indicator it's an issue.  

 

 

 

 

 

 

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1 minute ago, nomorejohndeere said:

The very fact that this thread was started on the subject is an indicator it's an issue.  

Of course it's an issue. It directly effects employees well being and over all financial stability.  

As someone said worker is working making a certain wage. Trying to pay his bills, hopefully put some in 401k or Ira. Maybe save or help his kids save for some education. Have a few nice things,  decent house and a dependable vehicle for starters and maybe a few small luxury items if lucky. 

  Now employer wants worker to pay for their health ins on top of that. If wages don't go up enough for worker to pay for that and at least keep current income, then they are going backwards. And remember inflation is likely to take off under current conditions and once the contract is signed employee is locked into the terms for 3, 4 , or 6 years in current subject of topics case. 

Also big employers love to throw figures around as to how extravagantly their employees are paid but much of those figures are indeed health care costs. Which is why many took these jobs in the first place, for the benefits offered as much as the wages many times.

Your self employed. Great I hope things are going well for you and continue to. But your the boss. You don't like something you get to chose what to do about it if anything can be. Employees at big corps don't have that luxury. They have to put up with all the corporate nonsense that goes with those type jobs. Plus are bound by terms of contract so don't get a chance to address some things until the next negotiation,  years remember. 

Yep they could quit and start their own business just like you.

But you could shut your business down and get a job with bennies just like them also.

Used to be a farmer around here that was a wheeler dealer. Was busy going on cruises in the bahams while his hired men worked 18 hour days spring and fall and had to wait weeks to get their checks and if they quit often didn't get the last one or more. 

Should I judge all farmers or self employed folks by his standards? Bunch a lazy spoiled rich business owners too busy playing and complaining about how they don't make enough? 

Walk a mile in the other guys shoes.

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1 hour ago, Cliff Neubauer said:

On the last Deere contract they got fully paid Healthcare, only had a $20 copay per visit.  

That's not entirely accurate.

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Group plans especially large groups offer better insurance at lower rates or at least that has been my experience. So if they are allowed to participate in a group they are still in a fair arrangement

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33 minutes ago, iowaboy1965 said:

Of course it's an issue. It directly effects employees well being and over all financial stability.  

As someone said worker is working making a certain wage. Trying to pay his bills, hopefully put some in 401k or Ira. Maybe save or help his kids save for some education. Have a few nice things,  decent house and a dependable vehicle for starters and maybe a few small luxury items if lucky. 

  Now employer wants worker to pay for their health ins on top of that. If wages don't go up enough for worker to pay for that and at least keep current income, then they are going backwards. And remember inflation is likely to take off under current conditions and once the contract is signed employee is locked into the terms for 3, 4 , or 6 years in current subject of topics case. 

Also big employers love to throw figures around as to how extravagantly their employees are paid but much of those figures are indeed health care costs. Which is why many took these jobs in the first place, for the benefits offered as much as the wages many times.

Your self employed. Great I hope things are going well for you and continue to. But your the boss. You don't like something you get to chose what to do about it if anything can be. Employees at big corps don't have that luxury. They have to put up with all the corporate nonsense that goes with those type jobs. Plus are bound by terms of contract so don't get a chance to address some things until the next negotiation,  years remember. 

Yep they could quit and start their own business just like you.

But you could shut your business down and get a job with bennies just like them also.

Used to be a farmer around here that was a wheeler dealer. Was busy going on cruises in the bahams while his hired men worked 18 hour days spring and fall and had to wait weeks to get their checks and if they quit often didn't get the last one or more. 

Should I judge all farmers or self employed folks by his standards? Bunch a lazy spoiled rich business owners too busy playing and complaining about how they don't make enough? 

Walk a mile in the other guys shoes.

Hate to point out to you that a business owner is in it for the money. Nothing wrong with that. You go in for an interview and they tell you what the pay and bennies are, what would be expected of you and then they ask if you are willing to accept that. You can always say no and go elsewhere or make a counter offer. You agree to the terms and conditions then that's it until you choose to quit, get fired or the company goes under.

The average business makes about 7% net after taxes and everything else. Most companies can't survive on less in case there are spikes in the cost of doing business. It would be nice if health care was affordable and an employer could offer it as a benny. A lot of things would be nice. If you go to Europe you can pay on an average of 64% of your earnings in taxes even for the working poor to pay for rationed health care. And they have taxes on top of taxes. Sales tax that's already included in the marked price. Value added tax in some places on top of that. Property taxes to include the value of your belongings. Kinda brutal. I don't have easy answers here. KInda funny with taxes too. Way back in the 50's and 60's the tax rate on the rich was close to 70%. But there were so many loopholes that the wealthy paid little if any taxes at all. When they dropped that rate to 38% they closed most of those loopholes. Average rich person now winds up paying about 28%. So taxing the rich more isn't going to pay for healthcare. They would soon run out of money. It a tax everyone would have to pay.

Now all this isn't an excuse for a company like Wal Mart to treat it's employees as they do. But it is part of life. Wal Mart has never to my knowledge tried telling people that you can have a great career with them. It's mostly considered an entry level job where a person leans to operate in a work environment and moves on to bigger and better things. But so is a job working fast food and a lot of others.

 

Rick

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My crystal ball says Deere contract will end with employee paid health benefits and a slight raise. Deere fired the first shot across the bow so the employees settle thinking they won a major concession and stuck it to the company. My guess most those guys have no idea how much insurance cost are or how much it has gone up since the last contract. For my employees its $685 plus a $75 aflac plan No family included. Add a wife and kids it is an additional $1,350.00-$1,600.00  

Now lets discuss west coast longshoreman.😠

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9 hours ago, 806 man said:

My crystal ball says Deere contract will end with employee paid health benefits and a slight raise. Deere fired the first shot across the bow so the employees settle thinking they won a major concession and stuck it to the company. My guess most those guys have no idea how much insurance cost are or how much it has gone up since the last contract. For my employees its $685 plus a $75 aflac plan No family included. Add a wife and kids it is an additional $1,350.00-$1,600.00  

Now lets discuss west coast longshoreman.😠

   Your crystal ball is pretty clear.  I hope your correct about the continued medical insurance benefit.  Taking that benefit away is a trend I do NOT want to see big business getting used to.

   Far as any raise,  The 2015 contract did not have a pay raise, it was actually a pay reduction. I forget what it was the company changed, but I don't think a wage increase this contract is possible, but if there is one it will be tiny, in spite of Deere setting new sales and profits every year.

    I actually worked during IH's big strike '79 & '80. I was requested to be one of about 6-8 members of the material handling dept. I drove a fork truck, and sometimes I drove the General Leaseways single axle IH semi-tractor they rented to move trailers around. Worked six 12 hour days a week,  was a l-o-n-g winter.  I had friends who were in the Union, the strike resulted in several divorces, several lost houses too.  Took years and years for the scars of that strike to heal.

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  Nothing new here.  Go back 35 years and what you describe was happening here.  An area pump manufacturer was battling its labor force over pay and benefits.  Long story made short is while the company did not make good on its threat to relocate production new hires came in for almost half of what the old timers were making.   My wife worked a career in government and where she was they were and still are pushing give backs HARD.  She got out just as the curve was getting steeper in terms of lost benefits.  This relates to the AI thread that Deere and others are banking on technology to replace most of the human labor needed today.  The world (without going into politics) is going to be a very ugly place in 10 years.  

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10 hours ago, oldtanker said:

Hate to point out to you that a business owner is in it for the money. Nothing wrong with that. You go in for an interview and they tell you what the pay and bennies are, what would be expected of you and then they ask if you are willing to accept that. You can always say no and go elsewhere or make a counter offer. You agree to the terms and conditions then that's it until you choose to quit, get fired or the company goes under.

The average business makes about 7% net after taxes and everything else. Most companies can't survive on less in case there are spikes in the cost of doing business. It would be nice if health care was affordable and an employer could offer it as a benny. A lot of things would be nice. If you go to Europe you can pay on an average of 64% of your earnings in taxes even for the working poor to pay for rationed health care. And they have taxes on top of taxes. Sales tax that's already included in the marked price. Value added tax in some places on top of that. Property taxes to include the value of your belongings. Kinda brutal. I don't have easy answers here. KInda funny with taxes too. Way back in the 50's and 60's the tax rate on the rich was close to 70%. But there were so many loopholes that the wealthy paid little if any taxes at all. When they dropped that rate to 38% they closed most of those loopholes. Average rich person now winds up paying about 28%. So taxing the rich more isn't going to pay for healthcare. They would soon run out of money. It a tax everyone would have to pay.

Now all this isn't an excuse for a company like Wal Mart to treat it's employees as they do. But it is part of life. Wal Mart has never to my knowledge tried telling people that you can have a great career with them. It's mostly considered an entry level job where a person leans to operate in a work environment and moves on to bigger and better things. But so is a job working fast food and a lot of others.

 

Rick

  Everybody says its an entry level job.  The standard next line is if you want better pay and benefits then go start your own company.  

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10 hours ago, oldtanker said:

Hate to point out to you that a business owner is in it for the money.

Believe it not that basic fact has not escaped me. But I hate to point out to you that every employee is also in it for the money including the benefits. 

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15 hours ago, DOCTOR EVIL said:

   Six years ago every Deere dealer lot I saw was cram-packed full of equipment. Now days they're mostly empty. They could possibly stay that way for a while.

I imagine this is partly due to the "chip shortage" which is affecting the automobile manufacturers, and why dealer lots are close to empty.

I would also think that the reason farm equipment dealerships no longer have much new equipment on display is the huge number of options available, so the large tractors and combines are built "as ordered"

If a dealer ordered a $500K tractor, or a $750K combine, it might set on his lot forever because it had too many options, or not enough options for the potential buyer to want it.

All the local JD has are a few <6 CUT, (10-30 series), all with loaders, which, I think would be easier to sell as is, to a homeowner/horse person.

The supply chain problem also has something to do with this also, but to a far lesser degree than the myriad of available options on the larger machines.

Quality Implement in Abilene built a new facility in Abilene, and they also have nothing but Compact Utility Tractors, again, maybe five or six, and one of them appears to be either a 5, or 6000 series.

The only large piece of equipment they have out front is a 16 or 24 row planter

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