Stock Values ​​Look Shaky for Deere & Co. Amid Strike

Hordes of Deere & Co. workers took to the pickets to strike to improve wages as the farm tries to secure its most profitable year to date. With thousands of Deere & Co. employees taking action on October 14, the stock market took notice of this employee action.

After a series of negotiations, Deere & Co. representatives were unable to reach an agreement with the United Auto Workers union to improve labor contracts. workers voted to reject a deal on the table that would have allowed for a 5-6% wage increase, as well as improved health benefits.

Labor crisis in the United States

strike against the world’s largest agricultural producer and supplier came alongside a growing labor crisis in the United States, a slow recovery from the pandemic and problems with global supply chains.

Despite all these challenges, Deere & Co. weathered the storm incredibly well, posting a 38% share increase over the past year. In fact, this is the most successful year in history for the company, which is why this strike is so significant.

When times were tough, the Deere & Co. workforce was willing to accept a less than ideal paycheck, but now that things are escalating, they feel it is time for fair compensation.

With more than 10,000 employees on strike, or roughly 15% of Deere & Co.’s total workforce, this seems like a significant moment for the company’s future. This is especially true with the understanding that the strike action will continue, which has set off alarms throughout the stock market.

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Investment bank Evercore has already downgraded Deere & Co. shares after the strike. shares were up 0.2%, following a 1.7% rise in the S&P 500 index.

timing of this strike is also an important factor, as North America is heading towards the middle of the harvest season. This strike could cause a ripple effect that prevents farmers from sourcing new equipment from Deere & Co., which could further hurt share prices.

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