© Reuters. FILE PHOTO: Caterpillar’s logo is pictured at the ‘Bauma’ Trade Fair for Construction Machinery, Building Material Machines, Mining Machines, Construction Vehicles and Construction Equipment in Munich, Germany, May 8 April 2019. REUTERS/Michaela Rehle/File Pho
By Hoa Bianca
(Reuters) – caterpillars Workers Inc (NYSE:NYSE) is scheduled to vote on a tentative deal with the mining and construction equipment maker on March 12, the United Auto Workers union told reporters. members on Thursday in a statement obtained by Reuters.
The company said Wednesday that it had reached a six-year agreement with UAW members that halted a strike at three manufacturing facilities in central Illinois and a distribution and parts center in York, Pennsylvania. .
Caterpillar outlined guaranteed pay increases and changes to parental leave and retirement benefits in the agreement, pending staff vote for approval.
The current deal, temporarily renewed, expires at midnight on March 1.
Under the new contract, employees will receive a $6,000 bonus upon approval. The company also detailed a 27% combined salary increase and lump sum payments over a six-year period, and an increase in employer contributions to retirement plans.
Health insurance premiums remain unchanged. Workers have said the deal doesn’t make up for years of wage freezes that have been absorbed by higher healthcare costs.
“What is known about the terms of the UAW-Caterpillar agreement indicates that it is another slap in the face and deserves overwhelming rejection,” a committee of Caterpillar union workers said in a statement. An announcement.
Caterpillar, which is already struggling with profit pressure as input costs continue to rise, has more than 100,000 employees worldwide. The contract covers about 7,000 employees.
The Irving, Texas-based company detailed its contingency plan on its website, saying it will operate facilities with management and contract employees if full-time employees go on strike. Manufacturing employers face a tight labor market, and workers at Caterpillar rivals Deere (NYSE:) & Co and CNH Industrial (NYSE:) NV have gone on strike in recent years.
“I’m sure CAT wants to avoid any protracted strikes similar to what (Deere) went through,” said Mark Grywacheski, a partner at Quad Cities Investment Group, LLC.
