Workers union blames Mexico outsourcing for John Deere’s job cuts
MICHIGAN, UNITED STATES — In a strongly worded statement, the United Auto Workers (UAW) union has condemned manufacturing company John Deere for its recent wave of layoffs, labeling the company’s actions as “reckless” and “an insult to the working class people of Iowa and Illinois.”
The international union, which represents approximately 10,000 John Deere hourly workers, accused the company of prioritizing “corporate greed” over American jobs and outsourcing positions to Mexico for cheaper labor.
UAW highlights Deere’s profits and executive compensation
The UAW’s statement pointed to John Deere’s projected $7 billion profit for the year and criticized CEO John May’s $26.8 million compensation in 2023. The union also noted that 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,” the statement read.
Deere cites market pressures for job cuts
John Deere has yet to respond directly to the UAW’s accusations. However, in a statement released on July 24, the company cited “significant economic challenges, rising operational and manufacturing costs, and reduced customer demand” as reasons for the layoffs.
The company reported a 20% decline in sales from 2023 to 2024, necessitating “tough decisions including layoffs at John Deere production facilities and reductions in our global salaried workforce.”
Impact on workers and communities
The layoffs have affected a combined 319 salaried workers at John Deere World Headquarters and John Deere Harvester Works in Illinois.
These cuts are in addition to previously announced layoffs of production workers, which will take effect on August 30.
The affected areas include John Deere plants in East Moline, Moline, Davenport, and Dubuque, Iowa, as well as hourly workers in Waterloo, Des Moines, Ankeny, and Urbandale who were laid off in June.
Union’s call to action
The UAW is actively working to mitigate the impact of these layoffs on its members and their communities.
“The UAW is hard at work trying to minimize the impacts of these cuts and layoffs for our members at Deere and pushing the company to do right by our members, their families, and their communities,” the statement read.
The union vowed to continue fighting against job cuts, layoffs, outsourcing, and cutbacks, emphasizing that the working class will not accept “scraps while the CEOs and shareholders get richer and richer.”
As John Deere navigates through these economic challenges, the company announced its plans to move the manufacturing of skid steer loaders and compact track loaders to Mexico by the end of 2026. This decision has further fueled the UAW’s criticism and calls for justice for its members.
