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Caterpillar
Quick Hit
by Progress Illinois
5:26pm
Tue Aug 7, 2012

Op-Ed: The Caterpillar Strike And The Middle Class

The following is written by Ron Kurowski of the South Suburban MoveOn Council.

It is not unusual for a company if it is in financial distress, faced with outrageous demands or is unable to compete in a tough economy to play hard-ball during contract negotiations with a union. However none of these apply to the strike by Local 851 of the International Association of Machinists at Caterpillar’s hydraulic manufacturing plant in Channahon, IL. That is what makes this work-stoppage so troubling.

Caterpillar is a very profitable company. It reported second-quarter profits of $1.7 billion, up 67 percent from a year earlier; a year in which Caterpillar earned $4.7 billion in profits. Despite its profitability and the fact that Caterpillar workers had their wages frozen during the previous six-year contract, the company is demanding the wage freeze be extended for its 780 union members for six more years, that workers pay a greater share of health care costs and that major changes be made to the seniority provision in the contract.

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