Due to Current Market Demand for Agricultural Machine Production, John Deere Lays Off Dozens of Employees

The World Leader In Agricultural Equipment Manufacturing, John Deere, Lays Off 85 Employees From Its Plant In Catalão – John Deere Stated That The Layoffs Were Done Due To A Current Market Demand For Agricultural Machinery. The Metalworkers Union Of Catalão Says It Was Informed Of The Layoffs In December. 

The agricultural machinery manufacturer produces sugarcane harvesters and sprayers and is located in southwestern Goiás. The plant is situated near some of the main sugarcane and grain production regions across the country. John Deere has been seeking innovative ways to utilize technology for sustainability worldwide for almost a century. In a statement, the agricultural company completed that the contracts of these workers had been finalized, since, according to them, they had a fixed term, the Metalworkers Union of Catalão (Simecat) was informed, and the process is already proceeding as transparently as possible. 

In 2014, the plant underwent some renovations and expansions, with an investment of about US$ 40 million. The expansion, which was completed in 2015, increased the production capacity of this plant by almost 30%. With the expansion, John Deere increased from 30,000 to nearly 45,000 square meters. These layoffs occurred last Tuesday (17). Simecat reported that at the beginning of December, John Deere announced it would lay off about 200 of its employees due to a nearly 30% reduction in the volumes of sprayers manufactured from 2022 to 2023. According to John Deere, the drop went from about 2,550 to approximately 1,700, a decrease of nearly 850 units that ceased to be produced, which created the need for personnel reduction. 

“Since then, several meetings have been held between SIMECAT and John Deere, and the union suggested measures to avoid mass layoffs, such as implementing layoff and utilizing the hours bank,” says the note from Simecat. The Metalworkers Union of Catalão (Simecat) detailed that, shortly after the announcement made in December, measures were suggested to avoid these layoffs. Although there was no consensus, right after the meeting, the agricultural company John Deere reduced the number of laid-off employees from 200 to 130.

According to the Union (Simecat), the president of the entity, Carlos Albino de Rezende Júnior, managed to convince John Deere not to lay off another 45 employees. These employees will have changes in their functions and utilize the hours bank. Simecat announced in a statement that it continues to hold meetings with John Deere to secure benefits for the 85 laid-off employees.

Layoffs at Mitsubishi

At the end of November 2022, the vehicle manufacturer Mitsubishi, which is located in Catalão, laid off 80 workers. The layoffs occurred after a meeting between the company and the union to adjust salaries for 2022-2023. There was a setback in the negotiations, but nonetheless, the mass layoffs were carried out.