Deere laying off hundreds more

"Due to reduced demand for our equipment, John Deere has informed employees at three of its facilities in the Quad Cities of upcoming layoffs effective Jan. 3. These include:

John Deere Harvester Works in East Moline, Illinois: About 200 production employees

John Deere Davenport Works in Davenport, Iowa: About 80 production employees

John Deere Seeding and Cylinder operations in Moline, Illinois: Seven production employees

It is important to note these layoffs are due to reduced demand for the products produced at these facilities. They are related to production moves. As we have repeatedly stated, layoffs this fiscal year are due to the weakening farm economy and a reduction in customer orders for our equipment.

Why are orders down?

The U.S. Department of Agriculture (USDA) forecasts major row-crop cash receipts to be down another 18% in 2024, following a 5% decline last year.

The USDA also forecasts marketing year average prices for the new crop (crops harvested right now) to continue to decline from last year and to be down over 30% compared to a couple of years ago (compared to 2022: corn -37%, soybeans -24%, and wheat -35%).

In the construction industry, compared to its peak in 2021, single-family home sales are down 30%, single-family housing starts are down 10%, and multi-family housing starts are down 40%.

Despite some interest rate reductions, the current interest rate level is still elevated compared to recent history.

Additional information:

Employees are eligible to be recalled to their home factory for a period equal to their length of service. Those laid off are automatically placed in seniority order for openings they are qualified to perform at the factory.

Laid-off employees will receive the following monetary benefits:

Supplemental Unemployment (SUB) pay, which covers about 95% of their weekly net pay for up to 26 weeks, depending on their years of service.

Transitional Assistance (TAB) pay, which covers 50% of their average weekly earnings for up to 52 weeks, after SUB pay runs out.

Profit Sharing, which is calculated based on their hours worked, average earnings, and the company's profit margin, if they have at least one year of service by the end of the plan year.

Healthcare benefits that employees can receive during a layoff include:

Employees can keep their healthcare coverage for at least six months, or as long as they are eligible for SUB pay, whichever is longer. After that, they can extend their coverage for another 12 months, but they have to pay the full premiums themselves.

Weekly Indemnity: Employees who become disabled while on layoff can get WI benefits for the same duration as their SUB pay, up to 26 weeks, if they meet the requirements.

Employee Assistance Program: Employees and their household members can access EAP services for the duration of their recall rights. EAP provides up to eight sessions of in-person or virtual therapy per year.

Other benefits laid-off employees may receive include:

Life insurance, legal assistance, tuition reimbursement and job-placement assistance."