‘Greed’: John Deere rolls out hundreds of US layoffs and sends work to Mexico

John Deere workers have cited the company's "greed" as the specific reason for the decision to shift production to Mexico. They believe that the primary motivation for this move is to cut costs and increase profits by taking advantage of lower labor costs in Mexico. The workers have expressed concerns that this decision will lead to further layoffs and uncertainty for employees at the affected plants. They also point to the recent profits of the company and the high compensation of its CEO, John May, as evidence of the company's focus on maximizing profits at the expense of its workforce6.

John Deere's decision to shift production to Mexico and lay off workers in the United States has broader implications for the manufacturing sector and union jobs in the country. This move is indicative of a larger trend in the manufacturing industry, where companies are increasingly moving their production to countries with lower labor costs, such as Mexico, to cut expenses and maximize profits.

The shift of production to Mexico and the resulting layoffs in the United States have several consequences for the manufacturing sector and union jobs:

1. Job losses: The layoffs at John Deere plants in the United States will lead to a significant number of job losses, particularly in states like Illinois and Iowa. This will have a detrimental impact on the local economies in these areas, as well as on the workers and their families who rely on these jobs for their livelihoods.

2. Decline in union influence: The layoffs at John Deere and the shifting of production to Mexico could weaken the influence of unions in the manufacturing sector. With fewer jobs available, union membership may decline, leading to a diminished ability to negotiate better wages and working conditions for employees.

3. Lower wages and job security: As companies like John Deere move their production to countries with lower labor costs, there may be increased pressure on workers in the United States to accept lower wages and reduced job security in order to remain competitive.

4. Impact on local communities: The loss of manufacturing jobs can have a ripple effect on local communities. As workers lose their jobs and have less income to spend, local businesses may suffer, leading to further economic decline in these areas.

5. Erosion of the middle class: Manufacturing jobs have historically been a pathway to the middle class for many Americans. As these jobs are outsourced to other countries, this pathway is weakened, which could contribute to the erosion of the middle class in the United States.

Overall, John Deere's actions are reflective of a broader trend in the manufacturing sector, which has significant implications for the U.S. economy, workers, and their communities. The shift to outsourcing and the pursuit of lower labor costs can lead to job losses, decreased union influence, lower wages, and weakened local economies. These consequences can have far-reaching effects on the overall well-being of the United States and its workforce.