CNH Dealers Concerned with UAW Contract Negotiations

Early in April, UAW Locals 180 and 807 members passed a strike authorization in the union's ongoing negotiations with CNH Industrial. The vote did not call a strike but instead gives the union the ability to call a strike on the workers' behalf should it be deemed necessary. The union’s contract covering Case IH workers expired on April 30th.

A recent survey from Farm Equipment Magazine found that 64.8% of surveyed dealers indicated they were worried about the impact ongoing contract negotiations between CNH Industrial and United Auto Workers could have on their business. Some 25.4% of surveyed dealers were not concerned, and another 9.8% were unsure.

In their commentary, many dealers referenced ongoing supply chain issues in the ag equipment industry, stating a strike could make the situation even worse. "Supply chain is backed up now, and we are not getting equipment in a timely manner. If they end up striking, this will make that situation even worse for us and our customers," said one dealer.

"We are 8-9 months behind on production now, I can't imagine a strike would help much. Although, if it is short-lived, maybe it will give some time for supply chain issues to catch up," said another dealer.

A Deere dealer saw the strike as a potential business opportunity, saying, "John Deere went through a strike and didn't miss that much due to the supply chain issues that continue to impact the business. We may pick up some business, because customers will be looking for items that cannot be sourced through their New Holland or Case IH dealerships."

Editor’s Take:

The dealers have every reason to be concerned about the potential damage a long-term strike would have on their business. Just as important are the difficulties it would cause for farmers/ranchers who depend on CNH equipment for their operations, especially during the busy spring season. We will hope for a quick resolution to these negotiations to minimize the impact on all parties.