South Milwaukee Caterpillar Steelworkers Say “No” To New Contract

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.