This is a great example of what can happen when workers decide to bargain together for what they are worth. https://uaw.org/john-deere-uaw-members-ratify-6-year-agreement-substantial-gains/ I have been on both sides of the fence with a certain big yellow tractor factory and those are turbulent times - I am really proud of this outcome.
If the economy turns around, and prices come down, then what ?
That is a good question I have no idea.
FWIW I have been reading online newspapers from Argentina (visited there once would love to go back) Everyone is unionized to the hilt. Doctors, nurses, hotel workers, bus drivers, etc. Everyone is pulling these walkouts, and getting 30%, 40% or more raises. BOOM ! right now...40% raise. Where doo they think that money is gonna come from ? How about the few people that don't get those raises ? So, in the case of Argentina, they are making their own inflation. I see this happening here, although less.
One would expect raises coming from the record profits these large corporations are earning. If the company you are working for is posting record profits... you would expect a raise, right? Who should receive that money? A CEO bonus? and stock options? Don't confuse inflation with greed.
Argentina just raised their interest rate to 46% to try to control 53% inflation.
..and what happens with the next year in a downturn ? A one time bonus or "profit sharing" would have been much better.
Unions do not exist to bleed companies dry, everyone still needs a job. They exist for the fair treatment of workers. Lets talk pay gap. Why should the assemblers or hourly guys be expected to take the hit during poor company performance and not the leadership that get paid on average 350% more? Excerpt from article linked; "The Economic Policy Institute (EPI) estimates that CEO compensation has grown 1,322% since 1978, while typical worker compensation has risen just 18%. In 2020, CEOs of the top 350 firms in the U.S. made $24.2 million, on average — 351 times more than a typical worker." My takeaway from this is to increase pay for Austin and Troy on the factory floor and the executives should have 1 yacht less.
You need to realize one simple fact: If you push the company too far, they will 'take their ball and go home". So however you want to justify it, it doesn't matter.
Perhaps you need to realize that is the attitude they want you to have. Take what you are given and shut up about it or they may take everything away.
You only see one side sir. Your bitter about something. As I said before, a bonus in a good year would have been better. As you can clearly see the union "Won" but yet, their numbers are being reduced.
Not at all, I have been on both sides of the fence, for the UAW and for Caterpillar. I may be bitter about merit, sure - check out the statistics I posted above. You should be bitter too. A bonus is great and all, but it doesn't go far enough. Workers deserve a bargaining unit for cost of living, bonuses, benefits, hourly rate/salary, provide legal council, ensure a fair working environment and set a date for renegotiation. In my opinion this is what the American Dream should include.
I've been a union member for 35 years and am grateful for the representation and steady benefits. We've walked the line as recently as 2018 to protect those benefits and our families and fellow trades people. Thank you for posting the topic, Chuck.
My wife clerked for Pacific Power-Warren Buffet. IBEW isn't what it was before Buffet, it's just a shell. Buffet requires 7% return on his investments. Crews were cut, service isn't what it was, a high percentage is done by outside contractors. It was a great place to work at one time but that has long since passed. Standard upgrades became nonexistent such as power poles just to name a few. Pacific Power and Rocky Mountain Power one in the same owned by Buffet.
I spent quite a few years travelling to Argentina for work. Their Governments have been generally well left-of-centre, certainly in recent times (last 25-ish years). Most presidents have been promoters of Peronism, once famously described as "a vague blend of nationalism and labourism or populism ." I predict that Argentina will likely be the next Venezuela before very long, or something uncomfortably close to it. My opinion is that people need to be careful what they wish for.
Good opinion and good thought.
The membership is hereby reminded that HEF's policy on discussing unions is that we are aggressive in maintaining neutrality. That is to say, to post facts is fine, but to venture into posting opinions is not. It has always been recognized here, that in our industry union vs non-union discussions have a high potential for becoming heated. This is posted in the strong faith that you will all endeavor to keep that from happening. Thanks.
To be fair JD has been cheapen-ing everything they touch for years now. Engine blocks made in India, not exactly a country known for modern metallurgy, and other parts from all over world at similar industrial levels. So their move to mexico may not have much to do with anything we're seeing.
I hear companies declaring record profits all over the place hell I am having record profits myself in dollars my margins are slimmer this year than last I would be curious if these record profits are backed by record margins or is it hype for share holders cause the market seems to be devaluing suggesting the margins dont match the record dollars I would also venture to guess the growth in profits matches the growth in revenue
Fair.
How can you have record profits and slim margins. A profit is money earned after costs. No margin = no profit. We used to get lectures at one company about gross profit, which really should be termed as gross receipts, when the managers wanted to brag up their business prowess. It became real quiet when someone asked about net profit.
Sounds like something I actually heard in a managers meeting once. They were talking about sales of ready mix concrete. One manager said, and I quote, " We are losing a little on every yard we sell, but we will make it up in volume." Just one of the reasons I left that company.
Yup, see linked: DE Stock | News | DEERE Stock Price Today | Analyst Opinions | Markets Insider (businessinsider.com)
From the stock analyst I follow: "Selling all of my Deere (DE)-$335.82 for an.18.7% loss" He bought this before the strike, when Deere posted those "record profits", so allot of investors (myself included) lost money. Little people, retirees etc.
...Sounds like he bought high and sold low
People are compensated based on the value they provide . Factories can train any number of people to do a certain task. There are few people who can effectively lead and manage a company.
I'm not arguing there executive leadership roles do not require high performing individuals, I am arguing they are not worth, on average, 350% more than you or I. I am arguing wage stagnation in comparison between lowest and highest earners is completely unproportionate and unreasonable. AND when **** hits the fan it is the the lowest paid, not the ones who make the decisions to keep a stable and growing business environment, who face the brunt of the consequences. I appreciate the belief of "workshop wisdom" and how much knowledge resides in skilled and unskilled person - some of the most intelligent people I have ever met have been performing tasks you claim can be performed by anyone.
I am not directing this at you Chuck. I always wonder why the 'low paid individuals' don't get jobs as board members. Then they wouldn't have to complain about their wages.
You quoted what I said so... If you want to drag this trout line of highest paid employees and their lineages I would bet you, dollars TO donuts, that you will find that most of them come from a well-to-do background. I would also imagine this background would be beneficial enough to provide the type of support structure that would eliminate problems like student loans, housing, child care, transportation and other realistic life expenses. I will argue that low paid employees aren't all low achievers, they just weren't born to the right money and opportunity.
I was not directing it at you because I know nothing about you: job, education, financial status, etc... I find it humorous that these companies actually negotiate with the employees. I had a business at one point with 3 employees. They came to me to 'collectively bargain' with threats of I would be screwed without them. I fired them all on the spot.
In the interest of maintaining neutrality, as requested by admins, I am all done here.
"We" wanted to loan JD money, so they could expand, invest, grow....etc. We believed in the employees, all of them. While it did go up with the quarterly report of profits, after the strike it went down. You don't want to see JD succeed ?
Doug - I am an engine mechanic at heart. My nephews call me a fixer. I like to fix everything that can be repaired. This is cell phones and personal computers to Sheetrock and tile to 70s British cars and 2020 equipment telematics. With my career and hobbies being out in the open - I have a very strong distaste for Deere’s credo on repairs done by third parties.However, I do not wish for them to fail by any means… even if they are direct competition. As for investments go, usually buying at historic highs is poor form. Union contract negotiation adds another iron to the volatility stew that has been cooking for the past years. Don’t blame your poor performing investments on workers wanting more for themselves.
I would estimate that those aforementioned union employees are at most 10% of the total employed by JD. Why should they get raises when the company performed poorly ?
My employee's get raises to keep up with inflation. If I don't give them raises, they go somewhere else, they are good guys and I enjoy having them work for me. So they get a raise when they need it. The deere company "performing poorly" has very little to do with the guys on the line, and much more to do with the stock market ups and down. I don't have a problem at all with the investors taking the loss instead of the line guys. Just like I don't expect my employee's to take a hit on their wages, if I'm blowing the company profits in Vegas. Or I make a bad business decision. If you don't like deere's stock prices, or the fact they have some union employee's - don't invest in them.
On a different note. Because I'm retiring in eleven months and the fact the boss is going to have Penske take over all the work when I'm gone, the service manager for Penske showed up today to see how I manage and schedule. He looked at the dry erase service board quickly added up the amount of equipment {170}. Turned and looked at me and said {Only two of you, how the f2ck do you handle/get it done?} We work a lot I said. He replied well I can tell those in the shop enjoy it now because the storm is on it's way. If we in America really performed the amount of work we should or say we do, everyone would be to tired to go spend it.
Congratulations on being that close to retirement! That's a big deal in my opinion. Sounds like you have earned it for sure.