WATERLOO - Any company which has added more than 190 jobs here in five years would be regaled with ribbon cuttings, tax incentives, and a flurry of accolades from government officials.
One company, highly visible in Waterloo, has done that hiring without much hoopla.
It is not a new business. In fact, the company will mark its 90th anniversary in Waterloo next year --- John Deere.
The word about its hiring success comes not from the company itself, nor local officials, nor economic developers - but from the labor union which represents most of its workers.
According to United Auto Workers Local 838, Deere's Waterloo operations have hired 958 union-wage workers since its current labor agreement was reached with the UAW in 2003, through early August of this year. The union reports 768 of its members retired over that same time frame. That is a net increase of 190 workers.
There has been a big hiring push this year. Through August, 223 workers had been hired and 100 retired. It is first net hiring increase in the union wage work force since 2004.
"We're headed back in the right direction," UAW Local 838 President Jerry Northey said. "They (Deere) are hiring more than they are retiring, and that's good news. We hope we can maintain that for as long as possible."
The union keeps tabs on hiring and retirees.
"We're hiring for every plant in Waterloo," Northey said. "Deere is doing some serious hiring now, and from what I'm told, that is going to continue for at least the next few months."
New models of Waterloo-made tractors are receiving widespread market acceptance. They are cited by company officials as one reason Deere is projected to have a fourth consecutive year of record earnings.
"Obviously we build a pretty damn good tractor, so they're in demand," Northey said. "We're proud of the product we make, and with justification.
"We hope they (Deere) continue to do well. Our members' jobs depend on it," Northey said.
Company officials also report Deere's salaried work force is slightly higher. Northey noted that too, because some union-wage employees have moved to salaried positions. Production has been high, and overtime has been heavy among existing workers, Northey said.
Deere is Waterloo's largest full-time manufacturing employer. It has approximately 4,800 full-time employees, according to Deere Waterloo officials, including 2,000 nonunion salaried workers and 2,800 union wage workers. That's up by about 100 from totals reported to the Greater Cedar Valley Alliance economic development group in an employer survey conducted last fall.
The recent hirings' significance isn't lost on local economic developers.
"It is significant, because it is the equivalent of a brand new manufacturing plant," Alliance CEO Steve Dust said of the UAW figures. "Whenever (an existing) manufacturing plant does expand employees, it does get less notice, and that's not fair. That speaks highly about the Cedar Valley economy. They (Deere) are able to find the people here. ... In Deere's case, they're creating some great new partnerships with schools to ensure a flow of quality workers not only to their various plants, but all over the Cedar Valley."
Deere is involved in education programs at Hawkeye Community College, including EMC2, which works with high school-age youths, and various study programs that allow students to obtain a two-year degree in a specified field of manufacturing. Qualified students may be hired by Deere.
Deere employment was headed in the other direction at the start of this decade. By Jan, 1, 2000, employment at Deere's Waterloo operations has slid to a 30-year low of 4,400 --- after peaking at 16,000 in the late 1960s. Most of that decline occurred during the 1980s, but approximately 2,000 were trimmed from the work force during the 1990s.
That was before Deere, on Dec. 7, 2000, announced a $127 million, multi-year redevelopment of its Waterloo operations. Efforts in product research and development here put that total investment at more than $500 million.
GCVA board chairman Ross Christensen said former Deere Waterloo operations general manager Mike Triplett challenged local economic developers to make significant improvements in schools, housing stock, recreation, cultural and "quality of life" opportunities to justify that investment and potential job growth. Christensen said the area has made major strides in all those areas.
Deere retirees' contributions to the work force also are substantial, Dust said, since many of them find other employment after leaving Deere, or start new businesses themselves.
Northey also believes Deere is bringing more work back into the plant instead of subcontracting or "outsourcing" it to other companies, one objective of the current labor agreement.
Company officials have said efficiency improvement within the Deere Waterloo plants helps bring more work into the plant. It is part of an initiative company officials called "CI Grow," or "continuous improvement grow." Company officials have said Deere would add work within the plants as productivity improved, based on goals measured quarterly.
"I think they (Deere) area starting to see some value in having control over their inventory," Northey said. "They made a promise and followed through."
Deere has been in Waterloo since March 14, 1918, when it bought the Waterloo Gasoline Engine Co., maker of the "Waterloo Boy" two-cylinder tractor, for $2.35 million.
Email This Page!