Strike at Deere plants in the US, more supply chain shortage to come

[Snobdds]

who knows ? Many of these large corporations self insure. Many pay a regular insurance company, (Blue Cross, etc, ) to draw up and over see the plan

As large as Deere is, If they aren't self insured, I'm Pretty sure they can get a better deal than just a two party /family insurance plan

Most self insure. Most will pay a company like BCBS to administer the claims and get their network discounts. Then they transfer the large claim risk away in two ways, individual and group risk to reinsurance companies in exchange for a premium.

The problem now is reinsurance companies have been loosing money for the past few year. The premiums on reinsurance has gone through the roof. Health insurance is one of the most complex industries on the acturial end of things. I can say though, for a plan with no out of pocket expenses, the company will pay around $2500 per month for a single contract and 6,000 on a family contract. The company can write a lot of that off, but those costs are unstainable. It will break John Deere. Then what? Was it worth the push?

 

[rScotty]

I was trying to think of an example of a major corporation that went under because they paid their workers too well.

There must be some examples of that happening.

 

[MossRoad]

Here's what they rejected:

The UAW and John Deere drafted this tentative, 6-year contract agreement on Saturday, Oct. 30. Here are the contract details:

• 10% wage increase in the first year
• 5% wage increases on years three and five
• Bonuses on even numbered years
• Healthcare with $0 premiums, $0 deductibles, $0 coinsurance
• New paid parental leave
• Autism care
• Retirement benefits
• Ratification bonus of $8,500

Per here:

Deere spokesperson says rejected contract is 'last, best and final offer' for union workers

While a John Deere representative says the second rejected contract proposal is the last draft, the UAW claims negotiations will continue.

www.wqad.com

Let's do the math on that...

Let's say you make $10,000 per year (for ease of math).

$10,000 + 10% the first year.

$10,000 + $1000 = $11,000

+ 5% in year 3.

$11,000 + $550 = $11,550

+ 5% in year 5.

$11,550 + $577.50 = $12,127.50

Then add on the $8500 ratification bonus. Spread that on top in 1/5 increments.

$8500 / 5 = $1700

$11,000 + $1700 = $12,700 1st year
$12,700 2nd year
$11,550 + $1700 = $13,200 3rd year
$13,200 4th year
$12,127,50 + $1700 5th year = $13,827.50 5th year.

That's a 38.275% pay increase by year 5.

Then it's time to renegotiate a new contract.

Good grief.

 

[PuffyC]

I was trying to think of an example of a major corporation that went under because they paid their workers too well.

There must be some examples of that happening.

They don't go under, they just move to China and India. Then everybody complains because there are no good jobs left.

 

[kenmac]

They don't go under, they just move to China and India. Then everybody complains because there are no good jobs left.

If I'm not mistaken, Deere already has operations in both those countries

 

[bigtiller]

Deere factories around the world;

• Brazil (3 factories) – Tractors and harvesters
• Argentina – Tractors and combine harvesters
• Finland – Forwarders and wheeled harvesters
• France – Power systems
• Germany – Harvesting equipment 6000 series tractors
• India (4 factories) – 5000 series tractors and harvesters
• Mexico – Tractors, construction equipment 6- and 4-cylinder engines, heavy-duty axles
• The Netherlands – Agricultural sprayers

 

[rScotty]

Let's do the math on that...

Let's say you make $10,000 per year (for ease of math).

$10,000 + 10% the first year.

$10,000 + $1000 = $11,000

+ 5% in year 3.

$11,000 + $550 = $11,550

+ 5% in year 5.

$11,550 + $577.50 = $12,127.50

Then add on the $8500 ratification bonus. Spread that on top in 1/5 increments.

$8500 / 5 = $1700

$11,000 + $1700 = $12,700 1st year
$12,700 2nd year
$11,550 + $1700 = $13,200 3rd year
$13,200 4th year
$12,127,50 + $1700 5th year = $13,827.50 5th year.

That's a 38.275% pay increase by year 5.

Then it's time to renegotiate a new contract.

Good grief.

I guess I'm way out of date. But I did work in a factory for half a year once, and would rather work outside.

 

[rScotty]

Deere factories around the world;

• Brazil (3 factories) – Tractors and harvesters
• Argentina – Tractors and combine harvesters
• Finland – Forwarders and wheeled harvesters
• France – Power systems
• Germany – Harvesting equipment 6000 series tractors
• India (4 factories) – 5000 series tractors and harvesters
• Mexico – Tractors, construction equipment 6- and 4-cylinder engines, heavy-duty axles
• The Netherlands – Agricultural sprayers

Does Yanmar still build the JD compacts in Japan? Or just the engines plus parts of the transmissions/running gear & electrics? Who makes the frames & body parts?

Come to think of it, what does JD build in the USA?

 

[sd455dan]

Deere factories around the world;

• Brazil (3 factories) – Tractors and harvesters
• Argentina – Tractors and combine harvesters
• Finland – Forwarders and wheeled harvesters
• France – Power systems
• Germany – Harvesting equipment 6000 series tractors
• India (4 factories) – 5000 series tractors and harvesters
• Mexico – Tractors, construction equipment 6- and 4-cylinder engines, heavy-duty axles
• The Netherlands – Agricultural sprayers

edit

Deere did have some manufacturing in China for several years, but apparently pulled out of Tianjin and Ningbo recently according to the link..

John Deere to withdraw from the Chinese market - New Replacement Filter for John Deere | AGROFIL

Deere's own site still shows those manufacturing facilities in China.?

 

[ruffdog]

Deere factory list:

Where are John Deere Tractors Made? | MachineFinder | John Deere Machinefinder