Corporation Pushes Six-Year Pay Freeze On Workers While Making Record Profits, Paying CEO $17 Mill

[cal04]

Corporation Pushes Six-Year Pay Freeze On Workers While Making Record Profits, Paying CEO $17 Million

Back in June, ThinkProgress noted that the manufacturing giant Caterpillar was seeking major concessions during contract negotiations with striking workers, even as it was making billions in profits and giving its CEO a 60 percent pay boost. The New York Times’ Steven Greenhouse added more details today, noting that the company wants to implement a six-year pay freeze and a pension freeze, at a time when it is making record profits:

Despite earning a record $4.9 billion profit last year and projecting even better results for 2012, the company is insisting on a six-year wage freeze and a pension freeze for most of the 780 production workers at its factory here. Caterpillar says it needs to keep its labor costs down to ensure its future competitiveness.

Caterpillar, which has significantly raised its executives’ compensation because of its strong profits, defended its demands, saying many unionized workers were paid well above market rates.

“A company that earned a record $4.9 billion in 2011 and $1.586 billion in the first quarter of this year should be willing to help the workers who made those profits for them,” said Timothy O’Brien, president of Machinists Local Lodge 851. “Caterpillar believes in helping the very rich, but what they’re doing would help eliminate the middle class.” Several labor experts told the Times that Caterpillar is a pioneer in tough labor negotiations meant to drive down workers’ wages.

http://thinkprogress.org/economy/2012/07/23/567201/caterpillar-pay-freeze/

At Caterpillar, Pressing Labor While Business Booms
(snip)
Now, in what has become a test case in American labor relations, Caterpillar is trying to pioneer new territory, seeking steep concessions from its workers even when business is booming.

Despite earning a record $4.9 billion profit last year and projecting even better results for 2012, the company is insisting on a six-year wage freeze and a pension freeze for most of the 780 production workers at its factory here. Caterpillar says it needs to keep its labor costs down to ensure its future competitiveness.

The company’s stance has angered the workers, who went on strike 12 weeks ago. “Considering the offer they gave us, it’s a strike we had to have,” said Albert Williams, a 19-year Caterpillar employee, as he picketed in 99-degree heat outside the plant, which makes hydraulic parts and systems essential for much of the company’s earth-moving machinery.

http://www.nytimes.com/2012/07/23/business/profitable-caterpillar-pushes-workers-for-steep-cuts.html?_r=1&pagewanted=all

[Panasonic]

1. Fuck no. Freeze all CEO pay and make it a maximum pay at 10% of their worker's maximum salary or

hourly wages.

Why give CEO's insane profits when the money can be easily distributed to the workers who worked hard while the lazy CEO's fuck up the company and get the parachutes.

[jp11]

2. B-b-but how will they be able to compete for the most greedy CEO 'talent'?

[Ikonoklast]

8. Bring in H1-B CEO's from India.

He'll do the same job for one-tenth the pay, and do it better.

[xtraxritical]

15. Too much trouble typing "where" this is?

"...most of the 780 production workers at its factory here." Instead of "factory here" you could type the place name.
(sorry Iconoclast, I'm replying to the main article)

[intheflow]

21. We could always outsource them to China.

They seem to be in the market for expanding greedy capitalist values.

[Thav]

9. What do you think this is? A CHINESE company like Lenovo?

No way, this is 'MERCIA!

[docgee]

12. Something simple like top paid person can't make more than 100 times comapny average. nt

[robinlynne]

20. At Costco the rule is top salary = 12X the lowest salary. That place has happy workers.

The CEO has to give a riase to the lowest paid workers if he wants a raise.
I LOVE THAT! a good capitalist. and the company thrives!

[Octafish]

3. Caterpillar won't be happy until there are no more unions.

Should that day come: The Ownship Class won't bring back slavery, because there wouldn't be a minimum wage.

[markbark]

14. They don't want slaves....

you have to feed, clothe and house slaves - and that REALLY eats into profits

[nichomachus]

4. The CEO made all those profits -- not the workers -- he deserves the pay

Mitt Romney told me.

[woo me with science]

5. Welcome to neoAmerica.

[HiPointDem]

6. kr

[cbrer]

7. We need to jack up the income taxes

On all income over $1,000,000.00 to 70%.

This of course will never happen with the current political structure.

And the Caterpillar jobs could end up being outsourced for even fatter profits to the wealthy.

The coming elections should be most interesting.

[Initech]

10. Corporations lust after profit the way Gollum lusts after his precious.

It's disgusting that workers get the shaft while these fucking CEO thieves get seven and eight figure salaries. It's not right!!!

[Populist_Prole]

11. We all know they're bastards, but

I just can't get over how bold they are about it! Is it perhaps a case of "making hay while the sun is still shining" while corporatists still reign supreme in government, or is it the final squeeze of a turnip before they cash out and move it all offshore?

[librechik]

13. the executives still "feel" poor--all that uncertainty about next quarter's profits, you know

and their feelings are the only ones which count.

[cstanleytech]

16. Is the freeze for all their plants?

If its just this single plant then why? Are the products they make at that plant not selling well?
If however the plants products are selling well then is it an issue with slow production compared to other plants?
If not then the workers need to tell the company where to shove that idea.

[rocktivity]

17. If Catepillar's management cannot turn billions in profits into to wages and benefits to employees

It needs to be replaced with management that can.


rocktivity

[limpyhobbler]

18. This should be illegal. nt

[bayareaboy]

19. Caterpillar used to have a Big plant out here in San Leandro

It kind of made the city. Then it went away slowly for about 20 years.

I can remember it always having severe problems with Machinists and even the folks working in the offices every contract. Family friends who worked there, kind of knew they had a job, but did not enjoy it.

Then Cat went away and all that is left is two gates with a nice surround that now frames a set of condos.

It is too bad, but greed wills out again.