Monthly Archives: April 2013

Update: Business Journal coverage has a statement from the union. And here is a story from the Chicago Tribune. Also, check out stories from the Wall Street Journal, BizTimes.com and Fox 6.

Here is the news from the Milwaukee Journal Sentinel. From the story …

The union representing about 800 employees at the Caterpillar Inc. factory in South Milwaukee has voted down a proposed six-year labor contract that would have frozen wages but provided additional protection against permanent job losses.

Members of United Steelworkers Local 1343 rejected the contract that, among other things, would have resulted in lower wages for new hires and increased health insurance costs for some employees.

Despite turning down the proposed contract, union officials said, the membership will return to work and will resume negotiations with Caterpillar for a new contract.

So, what does this all mean? Is a strike looming? A lockout? I hope not. That would be good for no one — including South Milwaukee as a whole.

I’ll keep you posted … and post your comments below.

Update: The Milwaukee Journal Sentinel has more details on the proposed contract … and the Business Journal is saying a strike won’t be called immediately even if the deal is voted down on Tuesday.

The Chicago Tribune has more information on the proposed Caterpillar contract for its approximately 800 unionized South Milwaukee workers. From the story:

Members of the United Steel Workers in Wisconsin are set to vote Tuesday on a proposed six-year contract with Caterpillar Inc. that would freeze wages, increase health care costs and give senior employees fewer protections.

The proposed agreement covers roughly 800 workers in South Milwaukee who, under the current contract, make about $18 to $34 per hour. Caterpillar acquired the South Milwaukee plant in 2011, when it purchased Bucyrus International Inc., a mining equipment maker, for $8.8 billion.

“Wages at the South Milwaukee facility are significantly above market, which puts our facility at a competitive disadvantage,” the company said in a summary of the agreement given to workers on Sunday at a union meeting.

 A Caterpillar spokesman declined to comment further.

The proposed contract also calls for a lower wage rate for workers hired after May. It would additionally freeze pensions and would, instead, direct employee retirement contributions toward a new 401k plan. …

On Sunday, some workers who attended the union meeting expressed frustration over the contract.

“There was a lot of anger in the room,” said Dewey Lewis, who was the union’s president when the current contract was negotiated. “It’s totally unfair. No self-respecting union would accept it.”

Caterpillar is also offering a $2,500 ratification bonus and annual bonuses through a new employee reward program.

Here is the report from Fox 6 …

It says United Steelworkers Local 1343 members met Sunday, and a ratification vote is set for Tuesday. No details on terms were available.

I’ll keep you posted.

Check out stories from the Peoria Journal Star and the Business Journal.

From the Peoria newspaper …

After months of temporary layoffs and short-term shutdowns, as well as a 45 percent drop in first quarter 2013 profits, Caterpillar Inc. announced layoffs at its Mapleton foundry.

Nearly 60 employees will be placed on indefinite layoff, the first of which will be effective in early May, the first long-term measure to “align manpower with production,” Caterpillar announced Thursday.

A statement from Caterpillar said the recent first quarter statement — which included a 17 percent drop in sales and 45 percent drop in profits from a year ago — showed that its manpower numbers did not align with the 2013 build schedule.

“We regret the impact to our employees and their families,” the statement said.

After months of temporary layoffs and short-term shutdowns, as well as a 45 percent drop in first quarter 2013 profits, Caterpillar Inc. announced layoffs at its Mapleton foundry.

Nearly 60 employees will be placed on indefinite layoff, the first of which will be effective in early May, the first long-term measure to “align manpower with production,” Caterpillar announced Thursday.

The company also announced its East Peoria campus will reopen for third shift on Sunday.

A statement from Caterpillar said the recent first quarter statement — which included a 17 percent drop in sales and 45 percent drop in profits from a year ago — showed that its manpower numbers did not align with the 2013 build schedule.

“We regret the impact to our employees and their families,” the statement said.