John Deere strike: US industrial action enters third week

More than 10,000 John Deere employees have been on picket lines for the past two weeks. This is what it means for Australian customers.

A striking worker pickets outside the John Deere Davenport Works facility in Davenport, Iowa on October 15. Picture: Scott Olson/AFP

Strikes at 14 John Deere manufacturing sites across the US are disrupting the company’s already-strained supply chain.

More than 10,000 United Automobile, Aerospace and Agricultural Implement Workers of America union members have been on picket lines for more than two weeks, after employment agreement negotiations broke down on October 14.

A John Deere spokesman said the company was working to come to a resolution with its employees, and did not foresee an “immediate impact” to machinery or parts supply to Australia due to the industrial action.

Construction and farming vehicles manufactured by John Deere sit in a yard at the John Deere Dubuque Works facility on October 15, 2021 in Dubuque, Iowa. More than 10,000 John Deere employees have been striking since October 14. Picture: Scott Olson/Getty Images/AFP

“With bolstered stock levels of parts in our Australian Distribution Centre in anticipation of a strong harvest, our focus here remains firmly on ensuring our customers have the support they need, when they need it,” the spokesman said.

John Deere dealership manager Sam Brown said he was confident the manufacturer had sufficient parts in stock to supply dealers during harvest.

Mr Brown said his Hamilton Cervus dealership was holding more parts inventory this season, because they had anticipated supply-chain issues due to Covid.

“We made some big calls early on to start bracing ourselves, ahead of knowing what the season was going to be like,” he said.

The US strikes were just one more factor contributing to nervousness among his customers, and causing an up-tick in advanced orders for harvesters and machinery, Mr Brown said.

“Because of the Covid world we now live in, everyone is forward planning,” he said.

“The agricultural industry are very smart business people. They are always forward planning. They have just had to open that lead time out a bit.”

Meanwhile in the US, UAW president Ray Curry and UAW vice president Chuck Browning announced yesterday that a tentative agreement was reached with John Deere.

A statement from the union said workers would remain on strike during the ratification process.