The Recent Ups and Downs of CNH Global

CNH Global NV, a big contributor to agriculture and construction industry is scheduled to lay off around 100 employees this month. The company is owner of some of the major brands in agriculture like New Holland Agriculture, Case IH and Steyr.

The agricultural company has enjoyed a successful past and continues to thrive in the market with its exquisite products, but a recent fluctuation in agriculture and market has wobbled the company’s structure.

In the past four years, CNH has seen some ups and downs. In 2011, it hired nearly 150 employees. Two-thirds were laid off the very next year. A couple of years later, CNH again hired employees, 130 this time. The same year, it laid off 150 employees. And now, CNH again plans to lay off workers, a preliminary figure suggests around 100.

The bad news for workers is that they are full-time employees at the local plant. The news was announced at the plant located at 7000 Durand Avenue last Friday, said the company’s spokesperson K. Prause.

The local plant produces CNH’s leading tractors New Holland series 8000 and Case IH Magnum. It also manufactures other important agricultural equipment.

Kathleen issued a written statement which indicated an indefinite layoff of “some 100 full-time employees” this month as a “response” to market conditions. She however, refused to go into further details.

As said by the President of United Workers Local 180, Jeff Vassh, the reduction is actually more than that. He says that there are only 635 workers left. Vassh says it’s only a response to market conditions and has nothing to do with anything else. He also confirmed that ‘100’ is only a preliminary number conveyed to employees.

Vassh inferred it’s not alarming, stating that he himself has been laid off a few times and then brought back in the past 39 years in CNH. He says it’s recurring and common, and that the laid off employees will have to wait some time for the market to return to normal.

Jeff Vassh cited that the aforementioned hires and layoffs were also a part of company’s strategy to cope with the market.

According to Vassh, CNH’s management plans to get every laid off employee back on board as market situation improves. What is your thought on this? Will the market get better sooner or will the employees have to endure this longer?