Striking Caterpillar Workers Reject Company Contract Offer Citing Lack of Raises with Rising Healthcare Costs

From Sun Times, 5.30.12, by Cindy Wojdyla Cain

Workers at a Joliet, Illinois Caterpillar plant voted down the latest contract offer from the company. Jesse Russell reports.

Eighty-two percent of the 800 employees rejected the contract citing a lack of raises with rising health care costs. As a result of the vote against the contract the workers plan to continue a strike that is now going into day 31. The workers are represented by the International Association of Machinists who asked the company to reopen negotiations after the contract rejection. Management has declined the request. According to the IAM the contract eliminated the defined benefits pension program and weakened seniority rights. Caterpillar saw a 58 percent increase of quarterly earnings in the last quarter of 2011 and has projected additional growth in 2012 of 13 percent to 20 percent. Earlier this year Caterpillar followed through with a threat to shut down an Ontario plant if workers rejected a contract offer.

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