WEST DES MOINES, Iowa — Union workers at John Deere were on the picket lines for a second day Friday after walking off the job due to failed contract negotiations.
The strike began at midnight Thursday after Deere and the United Auto Workers union failed to agree on a new contract.
In a statement Thursday, Deere said it did not have a timeline on when negotiations would be finalized.
The strike doesn't impact workers and the company, but it also has the potential to impact dealerships and shareholders.
After the closing bell Friday, Deere and Company stock went up 0.9%, ending lower than last week. Deere is ending the week 0.05% higher than Monday. When it comes to the company's year-to-date return, Deere is outperforming the Dow Jones Industrial Average, the NASDAQ and the S&P 500.
"John Deere's stock has had a huge run this year," said Cameron McCarty, President of Vivid Tax Advising Services. "With strikes, hopefully, they get finalized with an agreement sooner than later because if it is prolonged, it could hurt the stock, but it's too early to tell so far."
McCarty recommends checking in with a financial advisor and stressed this is one reason why it's crucial to have a diversified portfolio.
When it comes to how long the strike could last, economic experts suggest under the current conditions, such as a strong farm economy and strong demand for their products, the strike may not last long.
They want to be building more, not less right?" said Professor Peter Orazem in the economics department of Iowa State University. "If they were laying people off and you had a strike, there's no particular incentive for John Deere to want to settle. If they're not producing anything, why pay labor costs?"
Orazem said the risk to dealerships selling John Deere products is low, but that depends on how long the strike lasts.
Local 5 reached out to tractor equipment suppliers in Iowa and most chose not to comment. All States Ag Parts in De Soto said as a used parts dealership, the company could stand to gain if there is a shortage.
WATCH | More coverage on the John Deere Strike on Local 5's YouTube channel