Category Archives: Caterpillar

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.

Caterpillar released its first-quarter earnings Monday, and, as expected, it wasn’t pretty — for the company, or South Milwaukee.

Check out coverage from the Milwaukee Business Journal, Reuters and the Wall Street Journal. From the WSJ:

Caterpillar increased its exposure to the mining sector with its 2011 purchase of Bucyrus International Inc. for $8.8 billion. Caterpillar predicted that sales of Bucyrus machinery lines this year will decline 15%, while sales of big mining trucks, large wheel loaders and other mining machinery traditionally built by Caterpillar are expected to fall 50% from last year.

Chief Executive Doug Oberhelman said he remains upbeat about the Bucyrus purchase and the company’s deeper penetration into mining. “I still firmly believe that our move into mining was a change for the better,” Mr. Oberhelman said during a conference call Monday with analysts. “We’re definitely in a down cycle now [in mining], but long term it’s a great business for us.”

And check out Milwaukee Journal Sentinel and Business Journal coverage of Cooper Power Systems deciding to ship jobs in Pewaukee to Mexico. Thankfully, this doesn’t seem to impact South Milwaukee, where Cooper Power Sytems employs hundreds of people at its facility on Ninth Avenue.

You’ll recall that Eaton Corp. acquired Cooper last year.

Update: Here is Business Journal coverage. Cat reports earnings Monday.

The Milwaukee Journal Sentinel has a brief update — provided by the Steelworkers union — on the ongoing Caterpillar contract talks.

While minor issues are being resolved, big differences remain, according to the story. From it:

“Management is still seeking sweeping changes to our layoff and seniority language, and is demanding unfair concessions in other major economic and noneconomic areas,” the Steelworkers union said.

Negotiations have been under way for several weeks.

I’ll keep you posted.