- Sep 26, 2000
- 28,561
- 4
- 0
http://www.nytimes.com/2012/07/23/b...s-for-steep-cuts.html?_r=1&ref=organizedlabor
At Caterpillar, Pressing Labor While Business Booms
Despite earning a record $4.9 billion profit last year and projecting even better results for 2012, the company is insisting on a six-year wage freeze and a pension freeze for most of the 780 production workers at its factory here. Caterpillar says it needs to keep its labor costs down to ensure its future competitiveness.
Caterpillar, which has significantly raised its executives compensation because of its strong profits, defended its demands, saying many unionized workers were paid well above market rates. To run the factory during the strike, the company is using replacement workers, managers and a few union members who have crossed the picket line.
Caterpillar locked out about 450 workers at its locomotive plant in London, Ontario, and then closed the factory after the union rejected its demand to cut wages by 55 percent.
A company that earned a record $4.9 billion in 2011 and $1.586 billion in the first quarter of this year should be willing to help the workers who made those profits for them, said Timothy OBrien, president of Machinists Local Lodge 851, which represents the strikers. Caterpillar believes in helping the very rich, but what theyre doing would help eliminate the middle class.
He said the company wants a pay and pension freeze for longtime workers to push them into retirement and replace them with $13-an-hour workers.
This is why this country is in economic trouble. Caterpillar is doing a massive transfer of wealth from its employees to its wealthy stockholders and top management.
At Caterpillar, Pressing Labor While Business Booms
Despite earning a record $4.9 billion profit last year and projecting even better results for 2012, the company is insisting on a six-year wage freeze and a pension freeze for most of the 780 production workers at its factory here. Caterpillar says it needs to keep its labor costs down to ensure its future competitiveness.
Caterpillar, which has significantly raised its executives compensation because of its strong profits, defended its demands, saying many unionized workers were paid well above market rates. To run the factory during the strike, the company is using replacement workers, managers and a few union members who have crossed the picket line.
Caterpillar locked out about 450 workers at its locomotive plant in London, Ontario, and then closed the factory after the union rejected its demand to cut wages by 55 percent.
A company that earned a record $4.9 billion in 2011 and $1.586 billion in the first quarter of this year should be willing to help the workers who made those profits for them, said Timothy OBrien, president of Machinists Local Lodge 851, which represents the strikers. Caterpillar believes in helping the very rich, but what theyre doing would help eliminate the middle class.
He said the company wants a pay and pension freeze for longtime workers to push them into retirement and replace them with $13-an-hour workers.
This is why this country is in economic trouble. Caterpillar is doing a massive transfer of wealth from its employees to its wealthy stockholders and top management.