Swathes of workers at Deere & Co. took to the picket lines to strike for improved wages as the agricultural company looks to secure its most profitable year to date. With thousands of Deere & Co.’s workforce opting to strike back on October 14th, the stock market has taken notice of this employee action.
Following a string of negotiations, representatives of Deere & Co. could not reach an agreement with the United Auto Workers union regarding improved labour contracts. Workers voted to reject a deal on the table that would accommodate a 5-6% wage increase, as well as improve health benefits.
US Labour Crisis
The strike action against the world’s largest agricultural manufacturer and supplier arrived in conjunction with a growing labour crisis across the United States, slow recovery from the pandemic and issues with global supply chains.
In spite of all of these challenges, Deere & Co. has managed to weather the storm incredibly well, posting a 38% share increase over the past year. In fact, this is the company’s most successful year ever, which is a large part of why this strike action is so significant.
When times were tougher, the workforce at Deere & Co. was willing to accept a less-than-ideal pay packet, but now that things are on the rise, they feel it is time they received fair compensation.
With over 10,000 staff on strike, or around 15% of Deere & Co.’s total workforce, this feels like a significant moment in the company’s future.
