Survey Finds 54% Of Machinery Dealers Don’t Support John Deere Workers’ Strike

In the last two weeks since UAW John Deere workers went on strike after rejecting a labor agreement, the strike has shown no signs of slowing down. To gauge industry sentiment regarding the situation, a recent Farm Equipment Magazine poll asked machinery dealers if they support the strike or not.

Roughly 54% of dealers indicated they do not support the strike, while 37% said they did and 8.5% weren't sure.

Commentary from dealers who do not support the strike suggested Deere's record profits don't necessarily mean employees should see raises. One dealer said, "When every business is struggling to find good employees, a strike is the kind of thing that holds a company back from progressing. Just because the employees see their company having profits isn't a green light for the rank-and-file to get big raises. Employees have to understand that healthy profits for a company means more growth and expansion. It means the company has funds to put into R&D, advertising, product development, etc."

"As far as cuts to new hires, that goes on in every business with pension plans or retirement plans. With people living longer, that means more retired former employees are drawing from the pension plan. The union leaders are doing the rank-and-file no favors if they don't get the employees back to work. John Deere has great resources. If they need to move these jobs offshore to keep the company afloat, then they may have to do that. Then, Mr. Union Boss, where will your people be: on the unemployment line?", according to another dealer.

Some stated the UAW was taking advantage of the pandemic as leverage, with one John Deere dealership employee stating, "While a pay raise may be justified, I believe they are taking advantage of the current 'worker shortage' and pinning Deere down when they have no other option. I believe this will set a precedent in many industries and further exacerbate the product shortages."

"John Deere is in the business of making money," said another John Deere dealership employee. "Profits are used to improve benefits for employees and research and development for new and improved products. I'm sure the unions are not going to be willing to take a reduction in pay when there are years of downturn. They want the protection of their wages and benefits. I have two children who work for unions, so I see the benefits. But I feel they drive up the cost and prices, which just gets passed on to the end user."

EDITOR’S TAKE:

Machinery/equipment dealers are in a very tough position, similar to what many CAD members have been experiencing the past several months. There are fewer whole goods on the lot and less inventory of parts as a result of the pandemic. Now, add to that an extreme slowdown during the critical harvest season, which is followed closely by tax planning season for farmers that normally results in big year-end purchases. This could be a recipe for disaster. Farmers/ranchers may start hanging on to their equipment longer or switch brands to compensate for the Deere product challenge. None of which can be good news for Deere dealers. Thus, it’s not too difficult to understand their sentiment towards the strike. Unfortunately, this resolution is out of their hands – only Deere and the UAW can resolve this matter.