Trump Failed Deere Workers & Customers
December 11, 2019
Trump said his massive corporate tax cuts would help workers and his erratic trade policy would help farmers, but the opposite is happening.
Take a look at Deere and Co, a giant corporation that paid zero in taxes last year. Despite the wealthy company benefitting enormously from Trump’s tax law, Deere workers are losing their jobs, and Deere’s primary customers — farmers — are hurting.
Deere laid off 160 workers in Iowa and Illinois over the last two months, and just announced 57 more Iowa workers would be laid off.
October 2019: “Deere and Co. has announced layoffs for more than 160 production employees in the Quad Cities.”
December 2019: “More jobs are being cut from John Deere Davenport Works. According to a notification filed with the State of Iowa, Deere & Co. is laying off 57 workers from the facility at 1175 E. 90th St. in Davenport. The notice was filed Dec. 2. The Worker Adjustment and Retraining Notification Act requires employers to file advance notice of layoffs. This comes weeks after at least 100 were laid off at the same Deere facility. That layoff announcement came in early October.”
These layoffs come after Deere owed no taxes last year, despite earning $2.15 billion, as a result of Trump’s tax law.
NBC News: “The Moline, Illinois-based Deere, which was started in 1837 by blacksmith John Deere, who made farming plows, reported earning $2.15 billion in U.S. income before taxes. It owed no U.S. taxes in 2018 and reported that it was owed $268 million from the government, after taking into consideration various deductions and credits, according to its annual filing with the Securities and Exchange Commission. The company reported global profits of $2.37 billion.”
More John Deere workers fear for their jobs because of Trump’s erratic trade policies.
“I don’t know where this winning is coming from because we are having layoffs, and orders aren’t there.” – Illinois Deere worker
“Orders have sunk so low that I am lucky to have a job. What happens if we don’t get orders? I am out of the door.’” – Illinois Deere worker
“There is a lot of anxiety, a lot of fear.” – Local union leader for Illinois Deere workers
Deere’s chief economist warned that Trump’s erratic trade policies were hurting their top customers — farmers.
Washington Post: “The president has repeatedly professed his love for John Deere, and he recently blamed the Federal Reserve for making it difficult for the Illinois equipment manufacturer to compete. But on an August earnings call, the company’s chief economist, Luke Chandler, listed ‘uncertainties caused by trade disputes’ alongside weather and disease as drags on the agriculture sector. He did not mention interest rates. The company, meanwhile, has lowered expectations and vowed to cut costs.”