For Deere workers it’s a dramatic shift from the fall of 2021 when members of the United Auto Workers International went on strike with more than 10,000 workers across the Midwest. The UAW eventually won higher pay, pension and health care benefits in the negotiations with Deere.
In its remarks to Fox Business, Deere suggested the company would potentially shift operations to other locations with lower labor costs. “This includes optimizing our factories for future products, making our operations more efficient and taking advantage of locations in the U.S. and globally with a growing labor force.”
In May, Deere reported $2.37 billion in net income for the quarter, which was down 17% compared to the same quarter a year ago. Deere reported worldwide sales had dropped 9% in six months.
The cuts come as USDA reports net farm income will drop in 2024 by more than 25% to $116.1 billion. Receipts for crops are projected to fall 6.3% for the year while overall production expenses for farmers are expected to grow 3.8% for the year.
SMITHFIELD CLOSING IOWA FACILITY
Smithfield Foods on Monday also announced it would close a facility in Altoona, Iowa, affecting 314 workers. The Altoona facility is primarily used for ham boning, the company stated.
Smithfield said the company would consolidate production from the Altoona facility at other plants. Smithfield employs nearly 4,000 people in Iowa.
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