John Deere strike imminent?

UPS and delivery companies are begging for seasonal help. Even big box stores need help. Not great paying, but still some inflow.
Union workers can’t make more than $275 a week during the strike though.
Definitely could see the leverage swing back to JD. Could see some public pressure on the workers too, if they appear to be getting too greedy.
 
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I keep hearing about all of these rich investors. Not everyone who benefits from a rising stock market and dividends are fat cats. Where do you think your 401k, pension and other retirement funds are invested?

Most investors, even 401K's, are institutions with large amounts of capital. Your 401k is a pool of investments made by an institution. The owner's of that institution (investment house) are making huge margins on the 401k contributions they are investing.

When people talk about rich investors they are talking about 1) upper management who have stock options in the company and 2) large investment institutions such as Apollo and BlackRock because these are the people that own most of the available share. They aren't talking about Todd and his E-Trade account or Dave's IRA investments.
 
Honestly I don’t know the answer to that, one of the factory guys would have to answer. It’s a pension you aren’t getting anywhere else though.

I would think the other thing workers over 45 would have to consider is JD's health care benefits vs. what their new employer would offer.
 
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Most investors, even 401K's, are institutions with large amounts of capital. Your 401k is a pool of investments made by an institution. The owner's of that institution (investment house) are making huge margins on the 401k contributions they are investing.

When people talk about rich investors they are talking about 1) upper management who have stock options in the company and 2) large investment institutions such as Apollo and BlackRock because these are the people that own most of the available share. They aren't talking about Todd and his E-Trade account or Dave's IRA investments.
Insiders hold less than 0.15% of stock. Vanguard is the largest shareholder of record at over 7.2%.
 
To me, there are factors working in the favor of the company, and factors working in the favor of the workers.

Company:
1. They simply don't have the parts and materials to run the lines at full capacity right now, and they didn't before the strike. They may want to just bide their time, let some inventories build up, and bring back people when they can actually run the lines at full strength.
2. From everything I've heard, the salaried employees have been more productive than you'd think.
3. It was an extremely close vote considering several locations voted yes, and it's a big change going from 90% No to 55% No.
4. It's just getting colder out there.

Workers:
1. It truly is a bumper crop kind of year for Deere and it's a great time to demand more.
2. You can't keep riding your salaried employees.
3. Definitely one of the real points in history where there is a massive shortage of employees. Everybody is hiring.
4. Stock price drop of 5% is pretty significant for 1 day. What happens in the coming weeks will really put some pressure on. If it stays between a 5%-10% drop, I don't think people will be in a big hurry to make another offer. If it goes up to a 25% drop or something crazy, they'll be dying to put money into their hands.

The big unknown in this equation for both Mgmt & Labor is automation of the production process.

Not an exact apples to apples manufacturing process, but with the transition to EV's will have an impact on JD production processes and labor requirements over the next 5-15 years. Tesla and other "new" car companies bring a fresh approach & technologies to the manufacturing approach. Ford, GM, etc. will need to follow suite and that will impact JD, CAT etc.
 
Most investors, even 401K's, are institutions with large amounts of capital. Your 401k is a pool of investments made by an institution. The owner's of that institution (investment house) are making huge margins on the 401k contributions they are investing.

When people talk about rich investors they are talking about 1) upper management who have stock options in the company and 2) large investment institutions such as Apollo and BlackRock because these are the people that own most of the available share. They aren't talking about Todd and his E-Trade account or Dave's IRA investments.
But rich investors aren't the only ones benefiting from the performance of stocks. If any of your investments, 401k or otherwise, in any way contain a stock, and you make money when that stock goes up, criticizing that company's management for making the stock price go up seems hypocritical.
 
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The big unknown in this equation for both Mgmt & Labor is automation of the production process.

Not an exact apples to apples manufacturing process, but with the transition to EV's will have an impact on JD production processes and labor requirements over the next 5-15 years. Tesla and other "new" car companies bring a fresh approach & technologies to the manufacturing approach. Ford, GM, etc. will need to follow suite and that will impact JD, CAT etc.
If they make us go to electric tractors, we will be having to have charging stations on each end of the field probably.
 
Sure when the stockholders sign up for the same deal, and agree to return their dividends to ensure the corporation is still profitable.

We have spent 40 years enriching those at the top of the money train, while ignoring the working class. We have spent decades in stagnate wages, while the investor class has seen their stock value continue to increase. We pass laws to make sure that their investment income is taxed less than the workers wages.

So when. if ever does it end? When we reach the point where only those at the top have money while the rest of us continue to ask "may I have more, PLEASE"?
Uhh, they already do that when stock goes down…
 
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That's my point large institutions own a majority of the stock not Joe and his E-Trade account.

But the average Joe still sees the same percent on the average. I don’t understand why this is hard to comprehend.

Also I am firmly in the middle class but I don’t understand why people begrudge rich people nowadays. At some point someone in their family or themselves worked hard or took a big risk to make that money. I would love to be able to put my family in that position someday but realistically I’m just trying to put them in a better position then the opportunities my parents afforded me, which I am grateful for. But it just comes across as plain sour grapes when it comes to the rich these days. Everybody wants to take from them just because they have more. That’s not the America I want to be a part of. Go out and earn yourself a better way of life if you don’t like what you’re getting today or put your kids in a better position to do so.
 
But the average Joe still sees the same percent on the average. I don’t understand why this is hard to comprehend.

Also I am firmly in the middle class but I don’t understand why people begrudge rich people nowadays. At some point someone in their family or themselves worked hard or took a big risk to make that money. I would love to be able to put my family in that position someday but realistically I’m just trying to put them in a better position then the opportunities my parents afforded me, which I am grateful for. But it just comes across as plain sour grapes when it comes to the rich these days. Everybody wants to take from them just because they have more. That’s not the America I want to be a part of. Go out and earn yourself a better way of life if you don’t like what you’re getting today or put your kids in a better position to do so.

I don't begrudge rich people, but I do begrudge corporations who won't take care of their employees.

We are scheduled to inherit millions in land when my wife's parents pass. They didn't work hard for that land and take a risk to earn that value. And my wife and I sure as hell didn't take work hard and take a risk for it. It is simply a product of land values increasing over time and we get to reap the benefit. I'm not complaining but I also know many other people have similar inheritances that is gifted to them.
 
But Vanguard sells their funds to average Joes. I own Vanguard and I am an average Joe so I own Deere through Vanguard.

Kind of true. You aren't buying full shares in mutual funds, IRA's or 401k's you are buying fractions of shares from many different companies while Vangaard itself owns the full shares and profits from the margins and fees. You can't call up Vangaard and say "buy more Deere shares for my mutual fund", you are at the mercy of what they want to invest in.
 
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I don't begrudge rich people, but I do begrudge corporations who won't take care of their employees.

We are scheduled to inherit millions in land when my wife's parents pass. They didn't work hard for that land and take a risk to earn that value. And my wife and I sure as hell didn't take work hard and take a risk for it. It is simply a product of land values increasing over time and we get to reap the benefit. I'm not complaining but I also know many other people have similar inheritances that is gifted to them.
Somebody along her lineage did though. They weren’t just given that land from the government unless they were original settlers to which they took a risk.
 
Actually Deere has cut their dividends hard over the last 5-6 years. Was just at 3% back in 2015 and now is just in the low to mid 1%s last I saw. So the stockholders have been giving back money they were getting.


This part isn't true. The yield has gone down but that is due to the stock price rising, the DE dividend per share has not been cut in a long, long time.
 
This part isn't true. The yield has gone down but that is due to the stock price rising, the DE dividend per share has not been cut in a long, long time.
So if I buy stock today, my dividend yield return is the same as someone who bought back in 2015?
 
So if I buy stock today, my dividend yield return is the same as someone who bought back in 2015?
Not dividend yield (which is measured against stock price). For example. say DE paid $1.00 per share dividend in 2015, in 2021 they are paying $1.42. That is 42% increase in dividend payout over 6 years. If stock price has appreciated 60% over that 6 years, the dividend yield has decreased but the dividend payout has increased.
 
So if I buy stock today, my dividend yield return is the same as someone who bought back in 2015?

No, but I'm just saying that's not how dividends work or any decision that the company made to reduce that yield in that time. The dividend has risen 75 percent on a per share basis since 2015, but the stock price which the company doesn't directly control has outpaced even that growth. Similar to other things mentioned it would be silly for a company to base their dividends off of stock price only especially in cyclical industries.
 
No, but I'm just saying that's not how dividends work or any decision that the company made to reduce that yield in that time. The dividend has risen 75 percent on a per share basis since 2015, but the stock price which the company doesn't directly control has outpaced even that growth. Similar to other things mentioned it would be silly for a company to base their dividends off of stock price only especially in cyclical industries.
Correct, if the company loses money, they will cut dividends, stock will go down and the the managers stock options could expire upside down. What doesn’t go down though is the employee wages. The employees in essence don’t get the large jumps but get the safety of having their wages and/or increasing annually. Commission or profit sharing are always the fairest way to compensate, but most employees don’t want the risk. So they trade the high potential reward for the safety.
 
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