Five Days In, Here’s How the John Deere Worker Strike Is Already Impacting Farmers During Harvest

Oct 15, 2021; Waterloo, IA, USA; Members of the United Auto Workers strike outside of the John Deere Engine Works plant on Ridgeway Avenue in Waterloo, Iowa, on Friday, Oct. 15, 2021. About 10,000 UAW workers have gone on strike against John Deere since Thursday at plants in Iowa, Illinois and Kansas.
Oct 15, 2021; Waterloo, IA, USA; Members of the United Auto Workers strike outside of the John Deere Engine Works plant on Ridgeway Avenue in Waterloo, Iowa, on Friday, Oct. 15, 2021. About 10,000 UAW workers have gone on strike against John Deere since Thursday at plants in Iowa, Illinois and Kansas.
(Photo Credit: Bryon Houlgrave-USA TODAY NETWORK Via Reuters Connect)

More than 10,000 John Deere workers have been on strike for five days. Both Deere and United Auto Workers Union (UAW) insist negotiations are ongoing, but the strike is already impacting farmers who are busy with harvest. From sourcing parts to manufacturing tractors and planters, the strike could sting a supply chain that’s already strained.

It’s the biggest private-sector labor strike in more than two years. From Iowa to Illinois to Georgia, 10,000 hourly Deere workers who are part of the union can be seen picketing outside 14 John Deere manufacturing sites.

The strike comes at a critical time for farmers harvesting and searching for parts. John Deere continues to say it’s committed to keep operations going, with local farmers telling Farm Journal that salaried employees are being recruited to backfill vacancies on production floors.

“John Deere is committed to a favorable outcome for everyone involved and is committed to reach an agreement with UAW,” a John Deere spokesperson told Farm Journal. “Our immediate concern is meeting the needs of our customers, who work in time-sensitive and critical industries, such as agriculture and construction, and also to protect the livelihoods of others who rely on us, including employees, dealers, suppliers and communities.”

UAW hadn't responded to Farm Journal as of Monday afternoon, saying negotiations were ongoing. 

Double Dose of Issues: Supply Chain and Worker Strike

The strike issues are two-fold: keeping parts supplied to farmers at harvest, while continuing to build new equipment such as planters that are already delayed due to shortage of parts and supplies. The Parts Depot in Milan, Iowa, is open and operational. And with just over half the U.S. corn crop harvested as of Sunday, with USDA's latest Crop Progress Report also showing 40% of the soybeans in the country are still sitting in U.S. fields, the parts problem may continue to intensify in the coming weeks. 

But the workers on strike are already hitting home for one local farmer trying to harvest his crop. 2021 harvest came to a halt this weekend for Scott Bohnert, who farms just outside Moline, Illinois. Bohnert, whose wife, Karen, is the dairy editorial director for Farm Journal, said after their combine broke down over the weekend, it’s been a chess match to find the necessary part as both the strike and supply chain shortages are creating obstacles in finding a fix for the combine.

Bohnert says he’d typically drive to Milan, which is nearby, to pick up the part. Since the part wasn’t available there, he found it at an after-market parts company 10 miles from the farm. But citing the John Deere strike in Milan, the company wouldn’t allow Bohnert to pick it up. Instead, the parts company told Bohnert they would have to ship the part by freight, which would take days and add more costs. So, instead, the Bohnerts drove seven hours round-trip Monday to pick up the part from a John Deere dealer in Indiana.

Planter Problems Next?

As the hurdles during harvest are echoed by farmers across the country trying to find parts for all colors of equipment, concerns are also growing about what the supply chain issues, combined with the worker strike, will mean for parts and planters this spring.

John Deere Planter Works in Moline, Ill is being impacted by the strike. As salaried employees are sourced to help keep the plant operational, some fear if the strike lasts months versus days, it will cut into planter availability this spring. Typically, planters are built by mid-March, but if the strike lasts 90 days or more, there could be severe delays.

Tractors Already Sold Out for 2022

John Deere has already shut off orders for large tractors, including the 7000, 8000 and 9000 series. One John Deere dealer told Farm Journal the 9000 series are in the tightest supply, and many tractors that are 7000 series and up are already sold out for 2022.

Machinery Pete Says It's Impacting Used Equipment Values

Veteran used equipment value insider Greg Peterson, also known as Machinery Pete, says both the John Deere strike and the issue of sourcing semiconducters by CNH could push used equipment values higher.

“All this, of course, works to push potential buyers back into the used market, which as I said from the top, and as I’ve been saying all throughout 2021 …  the USED MARKET IS ON FIRE,” Peterson wrote in his latest blog post.

Peterson described it as a “tidal wave coming,” saying decades of reporting on the used equipment market has found the highest used equipment values at auction occur in November to December.

“In fact, 16 of the past 18 years, used farm equipment values have gone up during the fourth quarter, shown clearly here in my Machinery Pete ‘Used Values Index’ quarterly report going back exactly 20 years.”

Strike Could Last Months

The strike started last week after UAW workers rejected an offer that would have given 5% wage hikes for some workers and 6% for others. According to Reuters, the proposed deal would have called for 3% raises in 2023 and 2025.

One worker on strike told Farm Journal the disagreement with the corporation isn’t only fueled by wages. While wages is on the list, for many, the more important piece workers are picketing for are health insurance and profit sharing. In addition, supply chain issues have created irregular hours and schedules at plants, which adds to the frustration for some workers who aren’t salary.

Two workers on strike told Farm Journal the general consensus is the strike could last the remainder of the year, as a settlement may not be reached between Deere and UAW before the holidays. However, neither John Deere or UAW commented on a timeline of the talks. 

In the meantime, those on strike are going without pay. In Moline and Milan, local restaurants are supplying food to workers on strike. Last week, Sen. Elizabeth Warren (D-Mass.) voiced support of the workers on strike saying the workers have gotten the short end of the stick for decades now.

Both Deere and UAW didn’t comment on an expected timeline to reach a deal, or if a new deadline has been set to resolve the labor disagreement. The last strike against Deere by UAW lasted 163 days in 1986.

 

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