Deere layoffs spread to non-ag units

More employee layoffs were announced Monday by John Deere, including furloughs in the company's construction and forestry equipment sectors.

Moline, Ill.-based Deere said 150 workers will be laid off indefinitely Sept. 18 at the company's Harvester Works in East Moline, Ill. The plant manufactures combines and headers, which mount on the front end of combines.

Deere said 30 workers will be on indefinite layoff beginning Oct. 2 at the Deere Davenport Works. The factory produces construction and forestry equipment.

While agricultural equipment sales have declined due to a sharp drop in the prices paid for corn, soybeans and wheat, Deere had been counting on improving construction equipment sales.

Ken Golden, Deere director of global public relations, told the Quad City Times that the improvement has not materialized.

'We adjust the size of our manufacturing workforce to meet the demand for products,” Golden said.

Deere has about 1,500 employees on layoff, with the majority from agricultural equipment plants.

Deere announced in August that its third-quarter earnings were down. Sales and revenues fell 20 percent to $7.6 billion and were down 18 percent to $22.1 billion for the first nine months of the fiscal year.

On Aug. 26, the company began negotiations with the United Auto Workers union on a new six-year master labor agreement that will cover approximately 11,200 UAW members.

The current agreement expires Oct. 1.