John Deere reached a tentative 6-year deal with United Auto Workers
Covers 10k workers. Wage increases, signing bonuses, if workers vote approval.
DE was up like 5% (on a day of many stocks being up).
Ag economy and food safety tailwinds appear favorable to Deere. Supply chain issue is causing more national production of goods (at higher prices). Corn, wheat prices are way up.
Although this means higher labor costs, it also means clarity and a fixed employee cost for 6 years. If we do see what most people seem to be talking about now--persistent inflation--what Deere is going to pay may seem not high after all. If Deere can raise prices on tractors, they can actually expand margin. And they might just be first-movers on this one, where in 3 or 4 years other companies might have to pay a lot more.
Also, currently there is a trend or shift to thinking about more than just profits. Ie about workers.