Percentages are funny in that they only tell part of the story. I looked up Deere's financial reports for the last 5 years. Deere's income for the first 9 months of the year dropped ~20% from 2019 to 2020. 2020 to 2021 shows a large increase year over year due to the drop in 2019 in what has otherwise been a steady increase in income.
Likewise, John May didn't become CEO until November 2019 and wasn't named Chairman until May 2020. No comment on executive pay, but the guy literally changed jobs and got a promotion in the time frame that percentage is being compared against.
I briefly skimmed through the tentative agreement posted on the UAW website. From what I can tell, with no personal knowledge on the details, is that the major hold-up appears to be a combination of the two tier wage system and the elimination of a pension for new hires. Personally, I think the two tier wage system is crap. You shouldn't be making less pay for the same job as the guy next to you, given similar experience/skill. As for pensions, those really need to go away. They have been nothing but a gross burden to companies over the last few decades. Stupid promises made by companies when times were good. Turns out, retiring after 30 years then living for another 30 years with a pension costs a lot more money than anybody cared to predict. They also have a history of evaporating when companies go bankrupt or reorganize. A 401k with a company match for new hires seems to be a much more stable solution moving forward, in my opinion. But it does require you to actually take responsibility for your own future via investment decisions and share some risk in a company match that's based on company performance.
I have a pension. You know what I'm doing? I'm planning my retirement assuming it, and social security, won't exist by the time I retire. That means I'm saving and investing now and will continue to do so for the next few decades until I call it quits.
Props to you for one of the best discussions I've read in awhile and actually doing some research! Completely agree - percentages are SO easily to be manipulated to tell one side of the story. 83.2% of all percentages are made up ;)
2020 also brought a massive restructuring to Deere, which included early retirement buy-outs, some 1,500 salary jobs being eliminated and a massive reorg in the remaining positions that I have no doubt moved the profitability needle despite all the challenges of 2020/2021.
The two-tier wage system has been extremely difficult. The pay and benefit differences are mind-blowing and sometimes the haves vs. have-nots are only days in differences, depending on hire dates. One of the most challenging things for me, working in a union shop, is not being able to directly compensate or reward high-performing employees for individual performance. You can have more knowledge, skill, work ethic and drive than the person working next to you and still get paid the same. It does not foster competition, which I believe is necessary for the workplace.
I think so many hold on to the notion of pensions because they saw what the 1st tier employees gained from it, which was great, but really have become a thing of the past and to me, would be a very scary thing to bank my future on. I have a small pension and honestly I'm not even 100% sure how it's calculated, but it's something I maybe look at once a year and don't bank on it being there by the time I retire, so look at it being more of a bonus if it is available by then. I do feel for the new hires that will not have a pension, as it creates another divide, but at the same time they're coming in to a 401k program that is much higher than the previous matches.
Something scary that I have seen, is 2nd tier employees with less of a pension, that have not taken advantage of the 401k program and match over the length of their careers. In the last few years, 2 individuals that I've helped to set up their 401k's had 18 years of service in at that point and in their mid-50's.
In my opinion, I think the major hurdle in this contract is that employees expected to see a significant $/hr increase out of the chute. It has been a struggle to attract new wage talent to Deere, especially during a labor shortage, with the existing 7 month probation period before benefits kick in and other similar jobs in our area increasing their hourly wages to try and get employees in the door. Personally, I expected wages to go up more than what was proposed, but also figured that something else would have to give, like their current health insurance program that is the best that I have ever heard of. While the wages were not increased as much as people had hoped, they also did not lose anything, which is the biggest surprise to me. So, something has to give, right?