John Deere makes record profits despite strike

The Midwest farm and construction equipment maker posted an annual net income of nearly $6 billion, more than double the $2.8 billion it made the previous year, and easily snuffed out its record-breaking $3.5 billion profit for the prior fiscal year reached in 2013, it said. The company expects to generate profits between $6.5 billion to $7 billion in the current fiscal year.

“Our results reflect strong end market demand and our ability to continue to serve customers while managing supply chain issues and conducting contract negotiations with our largest consortium,” said CEO John May. “Last week’s ratification of a six-year agreement with the UAW puts our highly skilled employees back to work building the best products in our industries. The agreement demonstrates our continued commitment to providing the best pay and benefits.”

The company reported quarterly revenue and earnings that easily beat the previous year’s results and Wall Street analysts’ expectations. shares monastery (from) Up 2% in pre-market trading based on strong results and guidance.
More than 10,000 members of the United Auto Workers union They were on strike From October 14 to November 17. It only affected the last two weeks of the fiscal year that ended October 31. Deere did not detail the cost of the strike during the quarter or in general in its earnings report.
Work flexes its muscles as leverage tips from employers to workers
The strike lasted for a long time because members of the ranks Rejected the first two temporary agreements I arrived between the dir and the union nec. Several members felt the company was doing well enough financially to be able to afford a better offer than what was being proposed.
The strike has been closely watched nationwide and is an example of this Unions and workers flexing their muscles In a time of tight labor markets.

Last week, members finally validated what the company called its best and final offer, an offer similar to the second one rejected just two weeks ago. The new contract includes an immediate 10% increase, an $8,500 signing bonus, two additional 5% increases during the term of the contract, three lump sum payments equal to 3% of annual wages, and a cost-of-living adjustment to protect workers from the impact of price hikes.

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