Category Archives: Local Business

So reports the Chicago Tribune …

Well, that’s some good news. At least they’re talking.

Various media outlets are reporting that negotiations between Caterpillar and the United Steelworkers will resume Thursday.

Let’s hope there is progress.

Check out coverage in BizTimes.com, The Business Journal, the Milwaukee Journal Sentinel and Wall Street Journal.

And check out Caterpillar’s “2013 Milwaukee Negotiations” website, which includes details on the previous contract offered and other updates.

Business Week has an interesting profile of Caterpillar CEO Doug Oberhelman, as the labor dispute in South Milwaukee continues.

Among the comments: “We can never make enough profit.” From it:

After walking through the Peoria factory, Oberhelman takes off his safety glasses and sits down to eat his low-carb lunch: turkey wrapped in lettuce. He talks about his upbringing in Illinois and his career at Caterpillar. He lists his hobbies (hunting, “outdoors things”). Then comes the difficult question: Why is Caterpillar fighting its workers over wages? Oberhelman nods briskly, eager to put the issue to rest.

“We have to be competitive if we’re gonna win. And frankly, if we’re not competitive … we’re not gonna be here in the next 30 years. That’s a simple message, but”—he starts to hammer his hand against the table, punctuating his words with raps—“it’s very  … very … tough.” After a pause, he lets his hand lay flat.

“I always try to communicate to our people that we can never make enough money,” Oberhelman continues. “We can never make enough profit.” 

The Milwaukee Journal Sentinel has an interesting piece comparing the ongoing Caterpillar labor talks in South Milwaukee with the contentious ones last year in Joliet, Ill.

It’s an interesting read that provides an in-depth look at the hard stance Caterpillar takes in union negotiations — a stance the company has obviously adopted here.

From the article …

To see how strained labor relations could be at Caterpillar Inc. in South Milwaukee, you need look no further than Joliet, Ill., where the company faced a strike in 2012 that lasted nearly four months and might have set the stage for the current labor dispute here.

Local 851 of the International Association of Machinists and Aerospace Workers demanded cost-of-living pay increases and lower health care premiums for nearly 800 Caterpillar employees in Joliet, and asked the company to honor seniority rights.

After rejecting two contract offers and going on strike, they received: a wage freeze for workers hired before 2005, the elimination of pensions, doubled health care premiums, and fewer seniority rights.

Fast forward to today, and Caterpillar is in a standoff with Local 1343 of the United Steelworkers International that represents more than 800 employees at the company’s plant in South Milwaukee.

Last Tuesday, union members voted down a proposed contract that called for a six-year wage freeze and lower wages for new hires. It also would have given the company more flexibility in making temporary layoffs, up to 14 weeks per employee per year.

Contract negotiations are scheduled to resume Wednesday.

The resumption of talks comes as Caterpillar prepares to cut more jobs in North America.

First, it’s laying off another 300 people in Decatur, Ill., and it’s closing another facility — this one in Canada. More than 300 people will be without jobs there, according to CBC News.

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.