The United Auto Workers (UAW) has strongly denounced John Deere, a prominent manufacturing corporation, following recent mass layoffs at its plants in Iowa and Illinois. The union argues that these job cuts contradict the company’s robust financial performance, substantial returns to investors, and generous executive compensation, effectively refuting claims that these measures are necessary.
In a forceful statement, the UAW asserted, “John Deere’s reckless layoffs and job cuts are an affront to the working-class communities of Iowa and Illinois. The UAW is committed to fighting for justice for our members and the communities impacted by these decisions.” The union directly challenged the rationale behind the layoffs, stating, “Let’s be unequivocally clear: there is absolutely no justification for Deere to eliminate well-paying American jobs and relocate them to Mexico in pursuit of cheaper labor. The company’s projected profit for this year stands at a staggering $7 billion, while CEO John May received a total compensation package of $26.8 million in 2023.”
Highlighting the company’s financial capacity, the UAW further pointed out that John Deere, headquartered in Illinois, has allocated over $43 billion to stock buybacks and dividend payouts over the past two decades. This substantial figure, according to the union, leaves “no room for doubt that sufficient profits exist” and that the corporation “undoubtedly possesses the financial means to sustain good-paying jobs within Iowa and Illinois.”
The UAW directly accused the company of prioritizing corporate greed over the well-being of its workforce and communities. “Why, then, is Deere choosing to implement these layoffs? It is because Deere’s corporate greed takes precedence over the livelihoods of working-class families in Ankeny, Waterloo, Ottumwa, and Dubuque. Furthermore, our current trade regulations enable this behavior, failing to adequately protect workers on either side of the border,” the UAW statement continued. “When a company achieves the level of success that Deere has, driven by the dedicated labor of UAW members who produce the very products that generate these profits, there is absolutely no defensible reason for job cuts, layoffs, outsourcing, or benefit reductions.”
The company has spent $43.6 billion on stock buybacks and dividends over the past two decades. There is no question that there is enough profit to go around, and Deere can afford to keep good jobs in Iowa and Illinois.
— UAW (@UAW) July 30, 2024
The UAW represents over 10,000 John Deere employees across the United States. The union has a history of strong action, including a five-week strike in 2021 that successfully addressed inadequate wages and benefits for its members.
Recent reports indicate that John Deere has laid off approximately 1,500 workers in the U.S. as part of a company initiative to “control costs.” However, this cost-cutting measure comes despite reports from The Guardian’s Michael Sainato last month noting that John Deere reported “profits exceeding $10 billion in fiscal year 2023” and spent over $7.2 billion on stock buybacks.
The UAW’s strong condemnation follows John Deere’s recent announcement of another round of layoffs, impacting around 300 salaried employees at its Moline, Illinois headquarters. The Chicago Tribune reported that “This latest batch of layoffs follows the tractor manufacturing giant’s earlier announcement this month of nearly 600 job cuts across two Iowa factories and one in Moline, signaling struggles with falling demand for farm equipment.”
Given John Deere’s significant beneficiary status from federal contracts and subsidies, pressure is mounting on U.S. President Joe Biden and Vice President Kamala Harris to intervene in response to the company’s mass layoffs and stock buyback practices.
Les Leopold, the executive director of the Labor Institute, argued in a recent Common Dreams op-ed for government intervention to halt these layoffs. “Corporations that conduct business with the federal government will undoubtedly oppose intervention and cry ‘socialism!'” Leopold wrote. “However, if the Democrats fail to find a way to intervene and prevent these unnecessary mass layoffs, there’s a considerable risk that Trump/Vance might capitalize on the situation.”
As the White House has yet to issue a public response, the UAW has affirmed its commitment to mitigating the impact of these job cuts on its members at Deere. The union stated it is actively “pushing the company to act responsibly towards our members, their families, and their communities.”
“We will continue to fight for justice at Deere and send a clear message to corporate America: the working class will no longer accept meager scraps while CEOs and shareholders accumulate ever-increasing wealth,” the UAW concluded, signaling a continued and escalating battle against corporate greed and in defense of American jobs.
