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Caterpillar, USW cut off talks after breakdown

NEGOTIATIONS between Caterpillar and the United Steelworkers stopped late Thursday in Wisconsin -...

Donna Schmidt
Caterpillar, USW cut off talks after breakdown

According to Reuters, no more talks are scheduled but a walkout is probably not on the cards either.

The USW represents about 800 Cat workers at its South Milwaukee shovel and dragline plant.

The group was taken over by the equipment maker following its 2010 Bucyrus acquisition.

The existing contract expired on April 30 and the workers rejected an offer from the OEM last week that would have frozen wages for current workers and created a lower second-tier pay level for new employees.

A Caterpillar spokesman, who said the latest offer was competitive, told Reuters that it was “open to listening” to union workers despite no immediate plans to return to negotiations.

However, the official also said concessions were necessary because of the slump in global mining industry sales.

USW sub-district director Ross Winklbauer told the Milwaukee Business Journal that Cat had not been interested in the union’s counteroffers but its membership remained interested in continuing “good-faith negotiations”

However, he said, that good faith had to go both ways.

“Basically, the ball’s in their court at this time,” Winklbauer told the paper.

“If we sit there and talk and they just sit there then we might as well be talking amongst ourselves.

“We’re hoping that once they get past their hurt feelings that the contract was voted down, let’s sit back down and talk.”

According to financial filings, Caterpillar – based in Peoria, Illinois – closed the 2012 financial year on strong footing.

Chief executive officer Doug Oberhelman closed 2012 with a 32% rise in his compensation to $22.4 million.

On a related labor note, one of Cat’s largest facilities at Decatur in Illinois has suffered two waves of furloughs in as many months, with the latest earlier this month.

Cat reportedly said the move was to “bring production in line with demand”

As a result of both rounds of job cuts, about 760 of Cat’s workers will be sent to the unemployment line by the northern summer.

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