In the wake of John Deere laying off over 1,000 Iowa workers, the situation may be escalating into a legal battle.
According to Waterloo, Iowa-based news outlet KWWL7, a group of former employees is considering a wrongful termination lawsuit, drawing on precedents set by a similar Ford Motor Company case, which alleged age discrimination.
Megan Bonnani from law firm Pitt McGehee Palmer Bonanni & Rivers is leading the inquiry into this potential lawsuit. Her firm previously handled the case against Ford, and she notes similarities in the current situation. Bonnani told KWWL, “What we saw with Ford and what we’re seeing here is that specific employees, particularly those who are older or near retirement milestones, appear to be disproportionately affected by these layoffs.”
Bonnani also highlighted that the severance packages offered to employees come with a 45-day deadline for signing. She warns that some employees may have been unfairly targeted and advises them to consult legal counsel before signing any severance agreements.
Pitt McGehee Palmer Bonanni & Rivers said it is offering a free and confidential evaluation of severance packages for affected employees, aiming to support those unsure of their next steps.
“The company claims it can no longer support its hardworking employees, despite expecting $7 billion in profits this year, engaging in stock buybacks, and paying CEO John May a salary of $26.8 million in 2023,” the law firm said in a post on its website. “We support the [United Auto Workers’] calls for government intervention to address these unnecessary job cuts and advocate for fair treatment of its members.”
Over the past three months, John Deere has cut more than 1,000 jobs company-wide, including around 345 production positions at its Waterloo, Iowa facilities and an additional 170 across Waterloo, Johnston, and Dubuque. The company attributes these layoffs to reduced customer demand and rising operational costs. An additional 100 employees at the Seeding and Cylinder operations in Moline, Illinois, are also expected to be laid off in the coming weeks.
“Unlike hourly UAW employees, salaried personnel are not represented by a labor union. Salaried employees selected for termination as part of the company’s group termination program stand to incur significant losses in the form of lost salary, lost pension benefits, and retirement medical benefits,” Pitt McGehee Palmer Bonanni & Rivers said. “Older employees who are approaching vesting milestones for pension benefits are often the target of modern group termination programs because employers can realize significant cost savings by terminating personnel, thereby interfering with their attainment of pension rights and benefits.”
Additionally, John Deere has announced plans to move the production of skid steer loaders and compact track loaders from its Dubuque plant to Mexico by the end of 2026. This decision has sparked criticism and raised questions about the company’s commitment to its manufacturing operations in Mexico.
In response to the layoffs, John Deere issued a statement, saying, “As the leading global manufacturer of agricultural equipment, John Deere, like many others in the industry, is grappling with significant economic challenges, including rising global operational and manufacturing costs, and decreased customer demand.”
The company maintains that these layoffs are a direct result of the reduced demand for products produced at its Seeding and Cylinder operations.
