Caterpillar Remains in Dead-Lock with Workers

Caterpillar CAT, the manufacturer of construction and mining equipment, is insisting on a six-year wage freeze despite making record profits of $4.9 billion last year and projecting even better results for 2012. In addition, the New York Times, reported that the majority of the 780 production workers at the company's Joliet, IL headquarters are subject to a pension freeze. As a result, workers are striking at the plant. It really is not too surprising, as the only explanation Caterpillar gave is that the company "needs to keep its labor costs down to ensure its future competitiveness." It seems incredibly harsh by caterpillar to drain the spirit of its workers even when its numbers look good. Some will commend the company for taking a tough stance, others will observe that an unhappy workforce is worth very little. Workers across the country should be vocally cheering the Caterpillar employees, as they can be sure that corporate heads everywhere are watching. If Caterpillar can justify and get away with a pay freeze when business is booming, then others may follow suit. University of Illinois labor relations professor Robert Bruno was quoted by the New York Times as saying, "Caterpillar sees this as ‘the new normal,' while this union local feels you have to draw a line in the sand to hold on. Some people are saying the union should be more deferential, more compliant, that it's a bad time to strike. How can you counter a powerful multinational in this economy?” On Monday, Caterpillar traded at $81.87, up 1.14 percent. Follow me @BCallwood.