Update: This story from February (just came across it) quotes a senior Cat executive as being “bullish” on the future of his company’s mining operations. Let’s hope he’s right, and these layoffs are indeed temporary.
Bad news for South Milwaukee …
Check out coverage in the Business Journal and Milwaukee Journal Sentinel. From the Business Journal story …
Caterpillar Inc. told South Milwaukee employees Thursday morning that it plans to lay off 40 percent of its union work force there by June, or between 250 and 300 production workers, a local union official said. …
Fox 6 Milwaukee, The Business Journal’s TV partner, first reported the news.
Local United Steelworkers official Ross Winklbauer confirmed the company’s announcement to The Business Journal, after he spoke with Kevin Jaskie, president of USW Local 1343 and a Caterpillar employee.
The union represents about 810 workers at Caterpillar’s South Milwaukee plant. The Peoria, Ill.-based equipment manufacturer (NYSE: CAT) also has its global mining equipment unit based in Oak Creek.
The company is citing lower sales as the reason for the cuts, Winklbauer said. Caterpillar said this month that global retail sales of its machines dropped 13 percent in the three-month rolling period through February, compared with the same period a year earlier, according to MarketWatch.
But Winklbauer questioned the timing of the layoff announcement, with labor talks scheduled to begin Tuesday. The union’s contract expires at the end of April.
I’ll post more details when I get them.
And post your comments below!
South Milwaukee Blog 
http://blogs.marketwatch.com/thetell/2013/03/26/caterpillar-ceo-is-very-concerned-about-europe/
http://www.vancouversun.com/business/Caterpillar+reports+sales+downturn/8147137/story.html
Could it be that Caterpillar has a global problem and this isn’t about prepping for a local strike?
Do you have any information about all the 400+ non-union employees who were required to take a 4 week rolling layoff off 2 weeks ago or are we just concerned about the local union?
http://usmarketbuzz.com/cat-caterpillar-inc-nysecat-to-lay-off-employees-in-belgium-plant-1002
Al: It certainly could be about Cat’s global issues, and I have to accept their rationale for the layoffs at face value. The announcement timing, however, on the eve of contract negotiations, will obviously raise questions with some.
I don’t have information on the non-union layoffs. Sorry.
Cat has been screwing employees over left and right-all while their CEO gives himself multi-million dollar bonus’. One example is Canada, they went on strike and got locked out. Cat has been sending in scabs from Ill., to the South Milwaukee plant, who are not paying WI state income taxes-no road repairs or anything else for WI.with that b.s. If that is not enough, the union workers there have been contributing to the local food pantry, toy drives during the holidays, and to United Way-trying to help out the community-for years before cat showed up. Meanwhile, the scabs get a free education on top of it! So yes, Al, we should be concerned for our local union.
Great comments and links, Al. My hope that due to the impending negotiations and results CAT does not scale back or close their SM operations or plant.
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Do you think it is caused by Obama and the EPA guys and gals? Your “dem unions” supported Obama, right? You cannot have it both ways.
Coal mines? EPA? Shutting down coal producing plants for electricity? Hello? Vote for a dem again ladies!