UAW slams John Deere for mass layoffs amid record profits and lavish stock buybacks

Union criticizes John Deere for prioritizing profits over workers amid mass layoffs, outsourcing, and record stock buybacks.

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As John Deere moves forward with mass layoffs across its factories in Iowa and Illinois, the United Auto Workers (UAW) union has launched a fierce critique of the company’s actions, accusing the agricultural machinery giant of prioritizing corporate greed over the livelihoods of its workers. The layoffs, which have already affected an estimated 1,500 U.S. workers, come at a time when John Deere is enjoying record profits, substantial stock buybacks, and exorbitant executive compensation. This situation has sparked outrage among workers, communities, and labor advocates who see the job cuts as not only unnecessary but also as a glaring example of corporate exploitation.

Despite the recent job cuts, John Deere is projected to earn $7 billion in profits for 2023. The company’s financial success is further highlighted by its decision to allocate over $43 billion toward stock buybacks and dividends over the past two decades. In 2023 alone, John Deere spent more than $7.2 billion on repurchasing its own stock—a move that primarily benefits shareholders and executives, including CEO John May, who received a total compensation package of $26.8 million this year.

This stark contrast between the company’s financial maneuvers and its treatment of workers has fueled the UAW’s condemnation. “There is no need for Deere to kill good American jobs and outsource them to Mexico for cheap labor,” the union stated. The UAW’s statement underscores the irony of a company that profits so heavily from the labor of its workers while simultaneously discarding them in the name of cost-cutting.

The layoffs at John Deere’s factories have hit hard in communities across Iowa and Illinois. The towns of Ankeny, Waterloo, Ottumwa, and Dubuque—where John Deere facilities are located—are facing significant economic challenges as a result of the job cuts. These layoffs not only strip workers of their livelihoods but also threaten the economic stability of entire communities that rely on the jobs and economic activity generated by John Deere’s presence.

The UAW represents over 10,000 John Deere employees across the United States and has a history of standing up to the company. In 2021, the union led a five-week strike against John Deere over inadequate wages and benefits, a struggle that now seems to have been a precursor to the current conflict. The union is actively working to minimize the impact of these layoffs on its members and their families, but the broader consequences for the affected communities are already being felt.

John Deere’s actions are part of a broader trend of corporate behavior that prioritizes shareholder profits over workers’ rights and job security. The decision to outsource jobs to Mexico for cheaper labor has been a particularly sore point for the UAW, which argues that the company’s financial health does not justify such drastic measures. “When a company is doing as well as Deere, on the hard work of those UAW members who make the product that generates those profits, there is absolutely no reason for job cuts, layoffs, outsourcing, or cutbacks,” the union asserted.

This pattern of behavior is not unique to John Deere. Across corporate America, companies are increasingly using stock buybacks as a way to inflate their share prices, benefiting executives and wealthy investors while leaving workers and communities to bear the brunt of cost-cutting measures. The UAW’s criticism of John Deere reflects a growing frustration with a system that allows corporations to enrich themselves at the expense of the working class.

Given that John Deere is a significant recipient of federal contracts and subsidies, there have been growing calls for the Biden administration to take action. Labor advocates argue that companies that benefit from taxpayer dollars should be held to higher standards when it comes to their treatment of workers. However, the White House has remained largely silent on the issue, much to the disappointment of unions and workers who expected more robust support from a Democratic administration.

Les Leopold, executive director of the Labor Institute, recently wrote that if the Biden administration does not intervene, it risks alienating working-class voters and ceding political ground to figures like Donald Trump and his running mate, J.D. Vance. “Corporations that do business with the federal government aren’t going to like it and will surely cry ‘socialism!’ But if the Democrats don’t find a way to intervene to stop the needless mass layoffs that are happening right now, there’s a good chance Trump/Vance might fill the void,” Leopold warned.

As the situation at John Deere unfolds, the UAW has vowed to continue fighting for justice for its members and the affected communities. The union’s message is clear: the working class will not accept being left with “scraps” while CEOs and shareholders grow richer. The UAW’s fight against John Deere is emblematic of a larger struggle for workers’ rights in the face of corporate greed, and it is a battle that is far from over.

“We will keep pushing for justice at Deere and keep letting corporate America know that the working class will not accept the scraps while the CEOs and shareholders get richer and richer,” the UAW declared.

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Alexandra Jacobo is a dedicated progressive writer, activist, and mother with a deep-rooted passion for social justice and political engagement. Her journey into political activism began in 2011 at Zuccotti Park, where she supported the Occupy movement by distributing blankets to occupiers, marking the start of her earnest commitment to progressive causes. Driven by a desire to educate and inspire, Alexandra focuses her writing on a range of progressive issues, aiming to foster positive change both domestically and internationally. Her work is characterized by a strong commitment to community empowerment and a belief in the power of informed public action. As a mother, Alexandra brings a unique and personal perspective to her activism, understanding the importance of shaping a better world for future generations. Her writing not only highlights the challenges we face but also champions the potential for collective action to create a more equitable and sustainable world.

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