# John Deere



John Deere could have offered workers more

Only a week after United Auto Workers members ratified a new six-year contract with John Deere, the company announced record profits of $5.96 billion during the fiscal year that ended on November 1.

Tyler Jett reported for the Des Moines Register on November 24,

The company announced Wednesday that the new contract with the UAW will cost $250 million to $300 million. J.P. Morgan analyst Ann Duignan wrote in a note that she expects Deere to increase prices by 1.5% to offset its higher pay to workers.

That cost estimate appears to cover the immediate 10 percent raises and $8,500 ratification bonuses for each of Deere’s approximately 10,000 employees represented by UAW. The range of $250 million to $300 million would work out to between 4 percent and 5 percent of the company’s profits for the fiscal year that just ended.

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What UAW members gained with five-week strike

Iowa’s largest strike in decades is over after nearly five weeks. About 10,000 United Auto Workers members, including nearly 7,000 in Iowa, ratified the latest tentative agreement with John Deere by a vote of 61 percent to 39 percent on November 17.

The offer was only marginally different from the agreement UAW members voted down on November 2 by 55 percent to 45 percent. But many workers appear to have been convinced that this was truly Deere’s “last, best and final” offer, as management repeatedly claimed. Some local leaders warned the company might not come back to the negotiating table, or could hire strikebreakers if the UAW rejected the offer.

The last time John Deere employees went on strike in 1986, it took more than five months to resolve the impasse. Hundreds of UAW members who voted no in early November were unwilling to roll the dice on going into the winter receiving strike pay of only $275 a week, with no guarantee the final deal will be better than today’s tentative agreement. Tyler Jett reported for the Des Moines Register that support for the tentative agreement rose among UAW members at all five Deere facilities in Iowa.

There’s no doubt in my mind that the hugely profitable equipment manufacturer could have offered its workforce more generous terms. On the other hand, the new contract improves greatly on the company’s first offer in October. By going on strike, the UAW obtained the following:

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UAW members vote down latest John Deere offer

About 10,000 United Auto Workers members employed by John Deere remain on strike after rejecting the second tentative agreement negotiated this fall. Pickets will continue around the clock at the equipment manufacturer’s facilities, including five plants in Iowa employing about 7,000 people.

Whereas around 90 percent of workers rejected Deere’s first proposal, the November 2 vote was much closer: about 55 percent against and 45 percent for accepting the deal. Turnout was high at roughly 90 percent of the unionized workforce.

The Des Moines Register’s Tyler Jett reported that 71 percent of UAW members in Waterloo (the company’s largest factory) opposed the agreement, and 64 percent voted no in Dubuque. UAW members in Ottumwa and Davenport voted for the proposal by wide margins, while workers in Ankeny split 51 percent yes and 49 percent no.

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John Deere strike highlights many U.S. policy deficiencies

Glenn Hurst is a family physician in southwest Iowa and a Democratic candidate for U.S. Senate.

The United Auto Workers strike at John Deere is about fair wages and the value of work, but also about the corruption of our corporate welfare system and the devaluing of American lives. Sadly, the corporate value of workers mirrors the values of our own government.

The shift of the distribution of wealth in this country from the time of Ronald Reagan’s “trickle-down” economics clearly demonstrates how that policy failed Americans. Wealth consolidated at the top, and a minuscule portion barely trickled down to just the highest 10 percent of earners.

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On picket line, Tom Vilsack says Deere workers deserve "fair deal"

U.S. Secretary of Agriculture Tom Vilsack stopped by the United Auto Workers picket line in Ankeny on October 20 to express support for John Deere workers who have been on strike since October 14. He is the first cabinet secretary in recent memory to join union members on a picket line.

While speaking to the workers, Vilsack recalled how important the UAW’s support was to his first gubernatorial bid in 1998. Backing from organized labor helped him win the Democratic primary by less than a 3-point margin. He then came from behind to defeat Republican nominee Jim Ross Lightfoot by a little less than 6 points in the general election. “You don’t forget the people who gave you an opportunity to serve. You just don’t.”

Regarding the issues that prompted the strike, Vilsack told the UAW members,

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"This isn't just about us": The UAW view of John Deere strike

On the fourth day of Iowa’s largest strike in decades, George Clark of Podcast by George and I planned to interview some John Deere workers on the picket line in Ankeny. We learned that United Auto Workers, which represents some 10,000 Deere employees on strike, is discouraging rank and file members from speaking to the media.

However, JD Neal was authorized to talk with us outside the UAW hall in Des Moines. Neal has worked at the Deere plant in Ankeny for seventeen years and is among the leaders of the UAW Local 450.

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A few links on unemployment and finding a job

As you can see from this graph, job losses in the current recession are worse than in other recent recessions and are continuing to accelerate at a time when the U.S. economy has already started adding jobs during the past two recessions.

Paul Krugman, who has been arguing for a much larger stimulus package, is very worried:

To see how bad the numbers are, consider this: The administration’s budget proposals, released less than two weeks ago, assumed an average unemployment rate of 8.1 percent for the whole of this year. In reality, unemployment hit that level in February – and it’s rising fast.

Employment has already fallen more in this recession than in the 1981-82 slump, considered the worst since the Great Depression. As a result, Mr. Obama’s promise that his plan will create or save 3.5 million jobs by the end of 2010 looks underwhelming, to say the least. It’s a credible promise – his economists used solidly mainstream estimates of the impacts of tax and spending policies. But 3.5 million jobs almost two years from now isn’t enough in the face of an economy that has already lost 4.4 million jobs, and is losing 600,000 more each month. […]

So here’s the picture that scares me: It’s September 2009, the unemployment rate has passed 9 percent, and despite the early round of stimulus spending it’s still headed up. Mr. Obama finally concedes that a bigger stimulus is needed.

But he can’t get his new plan through Congress because approval for his economic policies has plummeted, partly because his policies are seen to have failed, partly because job-creation policies are conflated in the public mind with deeply unpopular bank bailouts. And as a result, the recession rages on, unchecked.

At MyDD Charles Lemos wonders whether current job losses may become permanent because of the manufacturing sector’s continuing decline.

Only the biggest layoffs make headlines, as when John Deere cut 325 jobs in Dubuque and Davenport last week. But almost all of us have friends or relatives who have lost their jobs in the past six months. Thankfully, none of my recently-unemployed friends are likely to lose their homes, but lots of people aren’t so lucky. Tent cities are booming across the country.

If you are looking for work, read this piece by Teddifish on How to get a job when no one is hiring.

Daily Kos diarist plf515 just found a new job and shared some advice in this diary:

How did I get this job?

I told everyone I was looking for work!  

This particular lead came from an announcement I made on SAS-L a mailing list about software that I use.  I am a frequent contributor there, someone who has read my work saw my mention, and then forwarded me a link to a job offer. […]

But I didn’t just mention it there.  I told everyone. I wrote a diary here; and I joined dkos networking; I announced it on mailing lists; I told my friends; I told former employers; I told the guy who does our dry cleaning; I told EVERYONE.  I also left cards advertising my consulting business all over.  

Can you find a job in this economy? Well, there are no guarantees.  But, if people don’t know you’re looking, they’ll never tell you about any openings.  

MyDD user ragekage has specific advice for people pursuing a career in nursing because they think it is a “recession-proof” occupation.

This thread is for any comments about unemployment or helpful advice about finding jobs.

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Obama must deliver on health care

I don’t expect to get everything I want from Democratic politicians in power. Probably liberals like me will have plenty of disappointments in the coming years. But if Barack Obama and the Democratic Congress only follow through on one big campaign promise, I hope it’s health care.

The many injustices of our current health care system have been thoroughly documented by nyceve, among others, but I want to add my two cents.

The 46 million Americans lacking health insurance represent one very large part of problem. Some can’t afford insurance, and others can’t find a private insurer who will sell them a policy for any price. You could spend all day listing the ways uninsured Americans get a raw deal on health care. They can’t afford preventive care and routine diagnostics, so they are more likely to be diagnosed with late-stage, incurable cancer. They are less likely to receive care for any number of chronic illnesses. They live with terrible, crippling pain. Few Americans without health insurance coverage are able to receive organ transplants, though many become organ donors after dying prematurely.

We need to get these people covered and get away from our broken employer-based health care system. Every day Americans who thought they had good benefits are joining the ranks of the uninsured–like my friend whose husband got laid off in October, right before his employer (a small manufacturer) went under. It turned out the boss had secretly stopped paying the health insurance premiums some time before. Or the retirees who worked at Maytag or at John Deere for many years and are now losing some of the health benefits they were promised.

Employer-based health care is also a huge drag on large corporations and our national economy, as clammyc pointed out in this recent diary.

In an ideal world, I’m for a Canadian-style single-payer system (also known as HR 676 or “Medicare for all”), but as a political compromise I would settle for something like what John Edwards and Hillary Clinton proposed during the primaries: mandatory health insurance, which would be portable with no exclusions for pre-existing conditions, and the option for any American to buy into a public insurance plan. Momentum is building in Congress for this kind of reform.

But getting Americans health insurance will solve only part of the problem. It’s shocking how many Americans with “good” insurance go without needed medical care. Only occasionally does a case makes national news, as when the teenager Nataline Sarkisyan was unable to get a liver transplant last year. A recent study found many Americans with chronic illnesses forgo medical care for cost reasons, even if they have insurance.

Then there are the “lucky” people who get the care they need for a medical emergency, but later face financieal ruin when their insurance company denies coverage. Medical bills are implicated in about half of all personal bankruptcies in the U.S.

When I had a medical emergency last winter, I got to the doctor relatively early, I received good care in the hospital, no lasting damage was done to my body, and my insurance company covered almost all of the costs (once we had exhausted our deductible). I remember our relief when the biggest bill arrived in the mail, for about $18,000, and our required payment was only $600. (I recognize that $600 would be a hardship for many families, but we are fortunate to be able to pay that without cutting back on any essentials.)

Yesterday I was reminded again of how things could have turned out very differently for my family. If you are a regular at Daily Kos, you may recognize the handle AdmiralNaismith. Among other things, he wrote a series of diaries about the political scene in all 50 states between April and October. The links to all of those pieces are here, and he wrote an interesting post-election wrap-up diary here.

AdmiralNaismith doesn’t write many personal diaries, but he recently discussed his own family’s “medical horror story”: Drowning in medical bills, despite insurance (another link is here).

He describes the sequence of events, including his wife’s life-threatening embolism, which left his family owing thousands of dollars for medical care–more unpaid bills than AdmiralNaismith earns in three months. He asked fellow bloggers to help pay down the three largest bills, which will otherwise be sent to collection agencies within 30 days. (He’s not asking anyone to send him money directly but provides contact details for the insurer, with name and account number.) A few hundred people paying $10 or $20 each would help enormously.

I will be calling to make a payment on Monday, and I encourage anyone who’s ever benefited from reading AdmiralNaismith’s informative diaries to do the same.

But equally important, I ask the community of Democratic activists, who did so much to elect Obama, to hold his feet to the fire next year on delivering the comprehensive health care reform he promised.

I haven’t been thrilled with Obama’s cabinet appointments so far. My number one hope for the new government is that Ezra Klein is right about what Tom Daschle as secretary of Health and Human Services means:

This is huge news, and the clearest evidence yet that Obama means to pursue comprehensive health reform. You don’t tap the former Senate Majority Leader to run your health care bureaucracy. That’s not his skill set. You tap him to get your health care plan through Congress. You tap him because he understands the parliamentary tricks and has a deep knowledge of the ideologies and incentives of the relevant players. You tap him because you understand that health care reform runs through the Senate. And he accepts because he has been assured that you mean to attempt health care reform.

Please share your thoughts or health care horror stories in the comments.

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Yet another failure of employer-based health insurance

If you’ve been on the job market in the last decade or two, you may know how hard it is to find a job with good benefits.

A lesser-known fact of life in this country is that even if you think your employer provides great health care coverage, you could get shafted later. nyceve has written a book’s worth of diaries about “Murder by Spreadsheet,” when for-profit insurance companies find excuses to refuse to cover needed medical care.

Insurance companies are not always to blame, however. Corporations looking to cut costs sometimes yank promised health benefits from retirees who put in many years of work and in some cases gave up pay raises in exchange for better benefits packages.

The makers of John Deere machinery have provided the latest example of this travesty. In response, some 5,000 former employees of Deere & Co. filed a class action lawsuit this week

demanding that company officials reset the clock to 2007 and restore health benefits that court papers say were drastically cut back this year.

The lawsuit, filed in federal court in Des Moines, alleges Moline, Ill.-based Deere broke longtime promises to its employees when the company on Jan. 1 “eliminated, reduced and dramatically altered” benefits pledged under retiree health plans.

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Court papers say the company for more than 15 years promised lifetime health benefits to employees who vested in Deere & Co. pension plans, and Deere can’t now back out of that deal.

In July about 3,000 retired former Maytag employees learned that Whirlpool, which bought Maytag in 2005, is trying to reduce their health benefits as well.

The Des Moines Register reported today that officials from Iowa’s Senior Health Insurance Information Program have scheduled meetings in Newton on September 17 “to warn Maytag retirees about upcoming choices and deadlines in the wake of a decision by Whirlpool to reduce their health benefits.” Maytag retirees have filed a class-action suit in Michigan claiming that Whirlpool must honor Maytag’s contracts that promised “vested lifetime retiree health care benefits.” That lawsuit is pending, as is a separate case filed by Whirlpool, seeking to impose the benefit changes on Maytag retirees.

Speaking of our screwed-up health care system, today nyceve posted a wonderful diary contrasting a video of John McCain saying, “Like Most Americans, I go see my doctor fairly frequently” with footage of Joe Biden talking about health care on the stump. Click through, these videos are worth your time.

It’s no surprise that McCain is out of touch with the realities of health care in this country. After all, one of the authors of McCain’s health “reform” proposal thinks there are no uninsured Americans as long as sick people can go to the emergency room.  

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