Thus far, Caterpillar has already forced a contract on the workers of the UAW that includes a six-year wage freeze and demands higher employee contributions to benefits. But that contract did have a sign-on bonus and a one-time cost of living increase.

In London, Ontario, Caterpillar took the austerity measures further by demanding that the workers accept a 50% cut in wages. When the workers there rejected the cut in wages, but agreed not to go on strike, Caterpillar locked out the workers on Jan. 1. The final result was the closure of the plant in February. The plant moved to Indiana only 36 hours after Indiana was declared a ‘right-to-work’ state, costing 465 workers their jobs. A few months later, Caterpillar declared $4.9 billion in record profits. Caterpillar’s CEO, Doug Oberhelmen, makes $16 million a year.

On the topic of the importance of solidarity between the labor movement and Occupy, Dale Prellwitz, a Caterpillar worker and union member, states “Its [solidarity] is important because if one part one local union, or one small group of people fail in whatever cause they fight for, the impact is felt by many others. If Caterpillar wins its fight against workers and unions, other corporations will learn how it’s done and do the same to their workers.” On an optimistic note, however, Dale Prellwitz added “If workers, regardless of their union affiliation, and other activists join together to defeat the greediness of corporations and work to win a living wage for workers, then everyone will benefit.”

The record profits and the austerity measures are indicative of an increased concentration of capital brought on by the purchase of Bucyrus International, which was once in the current South Milwaukee location. Under the current contract, which workers at the plant signed while still under Bucyrus management, workers are protected from austerity measures until April 2013, when the current contract is up.

Caterpillar has made other attempts around the U.S. to make similar cuts and draconian demands of workers. Currently, workers of the International Association of Machinists Local 851 are on strike in Joliet, Illinois after rejecting a contract that included almost the exact same austerity measures that were forced upon the Canadian workers. Support for the strike is growing each day.

In Pulaski, Virginia, Caterpillar and the Unites Steelworkers are now in talks and Caterpillar is yet again making the same demands. Dale Prellwitz said that the next big step in the labor struggle is to “redefine what it means to be in a union and the role of unions. Second, we need to establish workers’ rights laws. Finally, we need to change the political landscape.”

#SouthMilwaukeeWI #Caterpillar #Occupy #InternationalAssociationOfMachinists

Thus far, Caterpillar has already forced a contract on the workers of the UAW that includes a six-year wage freeze and demands higher employee contributions to benefits. But that contract did have a sign-on bonus and a one-time cost of living increase.

In London, Ontario, Caterpillar took the austerity measures further by demanding that the workers accept a 50% cut in wages. When the workers there rejected the cut in wages, but agreed not to go on strike, Caterpillar locked out the workers on Jan. 1. The final result was the closure of the plant in February. The plant moved to Indiana only 36 hours after Indiana was declared a ‘right-to-work’ state, costing 465 workers their jobs. A few months later, Caterpillar declared $4.9 billion in record profits. Caterpillar’s CEO, Doug Oberhelmen, makes $16 million a year.

On the topic of the importance of solidarity between the labor movement and Occupy, Dale Prellwitz, a Caterpillar worker and union member, states “Its [solidarity] is important because if one part one local union, or one small group of people fail in whatever cause they fight for, the impact is felt by many others. If Caterpillar wins its fight against workers and unions, other corporations will learn how it’s done and do the same to their workers.” On an optimistic note, however, Dale Prellwitz added “If workers, regardless of their union affiliation, and other activists join together to defeat the greediness of corporations and work to win a living wage for workers, then everyone will benefit.”

The record profits and the austerity measures are indicative of an increased concentration of capital brought on by the purchase of Bucyrus International, which was once in the current South Milwaukee location. Under the current contract, which workers at the plant signed while still under Bucyrus management, workers are protected from austerity measures until April 2013, when the current contract is up.

Caterpillar has made other attempts around the U.S. to make similar cuts and draconian demands of workers. Currently, workers of the International Association of Machinists Local 851 are on strike in Joliet, Illinois after rejecting a contract that included almost the exact same austerity measures that were forced upon the Canadian workers. Support for the strike is growing each day.

In Pulaski, Virginia, Caterpillar and the Unites Steelworkers are now in talks and Caterpillar is yet again making the same demands. Dale Prellwitz said that the next big step in the labor struggle is to “redefine what it means to be in a union and the role of unions. Second, we need to establish workers’ rights laws. Finally, we need to change the political landscape.”

#SouthMilwaukeeWisconsin #SouthMilwaukeeWI #Caterpillar #Occupy #InternationalAssociationOfMachinists

The contract creates what amounts to a four-tier wage system: Full wage employees (pre-1998), ‘New Hires’ (with a 35% reduction in wages), ‘Competitive Wage’ (at the Morton parts division) and the nationwide ‘supplemental’ employees (who get wages only – no health care benefits, paid holidays, vacation or sick days etc.).

The contract also forces workers and post-1992 retirees to pay premiums for health care coverage, as well as deductibles and co-pays beginning in 2006, ranging from $1000 to $3000. The premiums in the last three years of the contract are said to be fluid, with rates to be a percentage based upon the corporate cost of the premium which could be anything, considering it is the company’s plan.

Making matters worse for unionism, the ratified agreement included UAW-endorsed concessions which sacrificed the union members’ incentive compensation pay (a benefit worth far in excess of an estimated $20 million per year) in exchange for marginally reduced premiums and co-pays.

Union members resoundingly rejected – by over 90% – a similar company proposal in April 2004. In August 2004 union members again rejected what the company referred to as its, “last, best and final offer.”

During negotiations, CAT CEO Jim Owens was quoted as saying we need to eliminate the, “us – theyisms within Caterpillar.” The company is plugging a ‘one team’ culture ideology, and according to them we are embarking on a ‘cultural journey.’ They have spread the Team Leader (Junior Foreman) concept to more business units, heavily recruiting from the underpaid UAW new hire ranks.

In dealing with workers the company uses the ‘my way or the highway’ and ‘shoot first and ask questions later’ approaches to disciplinary action. At times the company abandoned all forms of progressive discipline (like verbal or written warnings) and put workers on the street for the first offense and sometimes for minor infractions, especially for union reps.

Another slap in the face: The corporate propaganda technique of taking workers out of the shop on company time for reward lunches when a division meets sales goal. On Sundays in the Peoria area, the company has taken workers on chartered buses to Chicago for an all expense paid, all you can eat, day at the ball game. These are just examples of the corporation throwing crumbs to working people while shareholders rake in the billions and managers get record-breaking profit sharing checks at the expense of working people.

Meanwhile many of us, particularly New Hires, with wages reduced by 35%, merely wish we could afford to take our wives and children out to dinner in a local area restaurant. Many of the UAW members in all the locals from Decatur, Peoria, Aurora and nationwide drive distances of 60 miles (or more) to go to work at Caterpillar – yet with fuel prices ranging over $2 per gallon the company has done nothing to help us. That does not begin to touch on the pain felt by the Morton parts division employees, referred to as Competitive Wage, who make far less than the manufacturing New Hire rate.

The company justification for the wage concessions was that they wanted to pay the average national manufacturing wage. The national average is arrived at by taking the highest known wage and the lowest and calculating the middle. Traditionally, major corporations like Caterpillar have made up the high end of the wage spectrum, which helps hold the average up. When enormous transnational corporations begin making average wages their goal, the average just keeps getting lower and lower.

Members want change!

There is growing support and interest in the Members for CHANGE team of UAW activists founded in the UAW Local 974. A young up-and-coming union activist, Rob Wilson, and a 30-plus year seasoned veteran, George Cornwell, joined forces in early 2005 to make bids for president and bargaining chairman of the local. While the bid was unsuccessful, they utilized it as a launch platform for local union-wide and community-wide activism.

Wilson, uses his veteran planning and strategic skills to the advantage of unionism, while working to build community support – frequently writing in local area newspapers challenging the corporate propaganda and writing for the Local union paper on shop floor issues. George Cornwell combines the visionary leadership style with a worker rights agenda and an in-depth knowledge of arbitration precedence that wins shop floor grievances.

Caterpillar struck back at the growing rank-and-file movement by discharging George Cornwell in March, within days of his nomination for the Local-wide bargaining chairman position. CAT claimed ‘inappropriate behavior,’ stemming from a verbal altercation with management during a grievance procedure. Cornwell was performing his duties as Grievance Committee Chairman (a federally protected status) when the episode took place. He was reinstated to work on Sept. 19 and the group celebrated with the first of many Solidarity Day rallies on Sept. 24.

#PeoriaIL #AutoUnitedAutoWorkers #Statement #AutoworkersFightBack #Caterpillar #UAW

Decatur, IL – Sunday, Jan. 9 proved to be a day of infamy for United Auto Workers members worldwide. The fallout from the new six-year contract with Caterpillar will ultimately touch the lives of every member, active or retired. Without any fight or any known strategy, United Auto Workers (UAW) leadership surrendered any hope of recovery at Caterpillar Inc.

The devastating contract passed by a narrow 59% margin after UAW international representatives told members that, in the event of a strike, they would be permanently replaced, or that Cat could move production to Dixie. In a shameful effort to secure a yes vote, the gloves came off and the threats flourished. Members say the informational meeting in Peoria, Illinois before the vote became so unruly after an international rep was booed off the stage, the meeting was cut short and the voting began.

In Decatur, in spite of weak leadership, the savvy rank and file of Local 751 rejected both the national agreement and the local agreements, by a margin of nearly two to one. Local 751 in Decatur however, does not have enough votes to vote down the master agreement for all Cat workers

The militancy in Decatur can be attributed to past leaders who had the courage to stand up to Cat and the UAW. It was in Decatur – where more than six years ago workers voted down offers by Cat and the UAW that left nearly 200 discharged members out in the cold – that the master agreement failed. Caterpillar and the UAW were forced to return to the bargaining table and reach an agreement that included the discharged members, in spite of the fact the national UAW said there was no more to be gained. UAW members honored their heroes while the ‘mighty UAW’ international union was willing to desert them.

National and local UAW leaders became the choir of despair with chants of, “This is not the time,” and, “This is the best we can do under these circumstances,” without clearly defining when the right time would be or what the right circumstances were. Cat began kicking the UAW in 1992 and continued until 1998 when a six-year concessionary agreement was finally reached. This agreement will continue the beating for six more years. Do the math. Eighteen years of, “This is not the right time.” How much longer will it take? Never!

In the past two decades the UAW has been on a path to destruction through its ‘jointism’ – partnerships with employers – and a variety of other schemes that mimic company unionism. Not one of those schemes has halted the massive losses in membership suffered by the UAW. When the UAW does circle the wagons, the employers are allowed to join the circle. Such was the case at Accuride Wheel in Henderson, Kentucky a few years ago. When UAW Local 2036 refused to accept a horrible contract offer, the UAW, after informing the company first, cut off strike benefits to the 600-plus member local. After an embarrassing picket of UAW headquarters in Detroit, curiously named ‘Solidarity House’, the UAW reinstated benefits to locked-out workers. Months later the UAW decertified the local and walked away, leaving those members without jobs, union membership, or hope, after more than three years of struggle. The regional director over the Accuride workers during that struggle is now the International President of the UAW.

The newly ratified Caterpillar contract has few changes over the previous offer – other than negative. Caterpillar, without blinking, never put another nickel on the table but shifted costs to different groups of employees. Why would they give something up, with all the white flags the UAW threw up? Incentive bonuses were shifted to the ‘bone us’ column to cover health care costs. Insurance costs for certain retirees were lowered some, but continue to rise throughout the life of the agreement. Part of that cost will come from working members who previously had paid insurance. Temporary employees remain third world members of the UAW. No benefits, no representation and no retirement; no hope! New hires are allowed to become full time under this agreement, but do not fare much better. The current ‘supplemental employees’ at labor grade 2, step 3, for example, have a base wage of $15.37 an hour. In the same grade and step if they convert to ‘new hires,’ they will be paid $12.50 an hour. The same pay for current employees is $20.44 an hour. New hires will receive benefits, which they now have to pay for, but no retirement! New hires will have a 401k, which they must pay into and are not a reliable source of retirement income. The August 2004 offer gave new hires the option of a 401k or the Caterpillar retirement.

Cat currently has more than 1100 supplemental employees, representing nearly 15% of their workforce and has offered early retirement windows for current employees. By the time this contract expires, Caterpillar may well be close to ending its defined pension plan. That is a giant step backward for any union, roughly 60 years backward. New hires will in many instances be working for $10.00 an hour less than current employees. Considering that most U.S. workers are working for 1979 level wages today, Cat has relegated its employees to poverty.

The parts division of Caterpillar, now known as Logistic Services, is paid so low after the 1998 agreement, some members are eligible for food stamps. York, Pennsylvania has only a few UAW members left. Cat has shifted most of those jobs to North Carolina. The Memphis facility wage scale starts at a whopping $8.25 an hour – from a company boasting record profits and the best market position in the industry. If the Memphis facility survives the six-year agony, workers can earn $10.50 an hour. Before we get too excited over this ‘rags to riches’ story, Memphis has been excluded from Plant Closing Protection.

Currently Cat is on the move to Mexico with UAW jobs from the Peoria area and salaried workers in the computer group have been outsourced to India. In the mid-1990’s, when the Denver logistics UAW local voted to accept the concession-ladened contract, the local union president committed suicide out of despair. Everything that union brother fought against, the UAW has surrendered, and without a fight.

What is in the future for UAW members at Cat? The only possible way to escape the ‘beg bargaining’ that robbed UAW members of the gains from years of struggle is for the members to organize and take control, local by local, and elect leadership that is accountable.

As a trade unionist reflecting on our blood-stained history, the sit-down strikes, the men and women murdered by the bosses’ goons and police, the blood shed and tears sacrificed by other generations for us, I am angered by this generation of so-called leadership in our movement so willing to piss on that sacrifice. From the top of the House of Labor to the bottom, I am shamed by those who have deserted workers in battle, who have lost the reality of class struggle, and contaminated our precious union with mirror images of the Bastards of the Boardroom.

Mike Griffin heads the Illinois-based War Zone Education Foundation

#DecaturIL #News #AutoUnitedAutoWorkers #Caterpillar #UnitedAutoWorkersLocal751 #jointism

Canton, IL – About 100 trade unionists and others gathered here, July 8, for Solidarity Day 2. This second annual picnic and program celebrating the solidarity of working people brought together labor activists from Illinois, Michigan, Minnesota and Missouri. Rob Wilson, a rank-and-file leader of UAW members at Caterpillar told the crowd that the corporate elite that run this country do not care about anyone or anything except their bottom line. Larry Solomon, retired president of Decatur UAW Local 751 and a legendary labor leader of the mid-1990s battle with Caterpillar, gave the Solidarity Day address, in which he called on workers to come together to transform the labor movement and the country as a whole. Other speakers included Tom Seymour, retired president of UAW Local 858 and Leroy McKnight, a General Motors retiree.

Rank-and-file UAW members at Caterpillar are a positive example for the rest of the labor movement. In April, UAW Local 974, located in East Peoria, Illinois, held an election for delegates to the United Auto Workers International Constitutional Convention. In a stunning upset for the incumbent caucus, the Members for Change! group, led by Rob Wilson, won a majority of five delegate positions out of eight.

#CantonIL #News #AutoUnitedAutoWorkers #AutoworkersFightBack #UnitedAutoWorkers #Caterpillar