50% pay cut or we close the plant....

[XV1100SE]

Caterpillar closing London Ontario Diesel locomotive plant....

http://www.thestar.com/news/article/1126200--caterpillar-shutdown-u-s-company-bails-from-london-ont-s-electro-motive-diesel-plant?bn=1

[Gary N.]

[XV1100SE]

Not stirring the pot... Caterpillar offered the workers half of what they were making and threatened to close the plant if they didn't accept. Now they are putting the workers out of work and from the way the U.S. plant is going to operate this would be union busting.

I'm not pro-union... they had their day. But how would you like to go from living on $29 an hour down to $14 doing the same job? Especially when Caterpillar is reporting high earnings? Concessions are understandable when the company isn't doing well, but a 50% pay cut when they are making high earnings?

[Midnight]

The outcome of this simply stinks. An example of corporate greed at its finest. Who's next????????????

Edited February 4, 2012 by Midnight

[aharbi]

and the gap continues to widen between management and worker. Caterpillar quadrupled CEO Doug Oberhelman's compensation last year to $10.5million.

[KarlS]

Been happening here in Michigan for years. Yet the CEO's and upper management salaries and bonuses kept going up. My ex-Father-in-law worked for a company in Detroit that designed and built heavy manufacturing equipment, went home on a Friday making $28.00 an hour, came in on Monday and found out he was now making $16.00 an hour. He had been working there for 32 years. These companies think that there are so many unemployed that people will work for almost nothing, so now they are complaining that they cannot find qualified skilled workers. Well the skilled workers have moved out of Michigan where they can make a livable wage for their skill level. I better go back to my corner now before I start ranting.

[Jonesboy]

Four more years of the same for this country and minimum wage will look good.

[Nighthawk II]

Four more years of the same for this country and minimum wage will look good.

And by then minimum wage will be half of what it is.

[XV1100SE]

... another article on it....

http://www.thestar.com/news/article/1126357--cohn-how-canada-let-caterpillar-strip-a-plant-clean?bn=1

[Redneck]

Not stirring the pot... Caterpillar offered the workers half of what they were making and threatened to close the plant if they didn't accept. Now they are putting the workers out of work and from the way the U.S. plant is going to operate this would be union busting.

I'm not pro-union... they had their day. But how would you like to go from living on $29 an hour down to $14 doing the same job? Especially when Caterpillar is reporting high earnings? Concessions are understandable when the company isn't doing well, but a 50% pay cut when they are making high earnings?

If you don't like the job go get an other one.

[Yammer Dan]

If you don't like the job go get an other one.

 

 

Get a Job??? I worked a lot of years to get rid of one!!!

[djh3]

I might go look for another job. But I dont want to move to Mexico, India or China. Dont leave alot of choices huh?

[FROG MAN]

Marcellus and Utiga shale drilling is booming here. Plenty of work for those experienced in natural gas related jobs.Truck drivers are in high demand.

[cimmer]

Interesting and I do feel for those workers in London. This is what happen in La Grange, Il when EMD shut down manufacturing and moved it to London Ont, 25 years ago I guess. At that time they stated that it was cheaper to build the locomotives in Canada due to the exchange rates then it was in the USA. This was back when General Motors owned EMD. Since then it has changed hands a couple of times with Cat owning it now. I guess with the Canadian dollar near the US dollar the savings weren't there so they are moving the plant to Muncie Indiana.

I hope the London workers can find new employment with compatible pay soon.

 

Rick F.

[wrenchrob]

London and area such as ST Thomas definately dont need anymore job losses. The unemplyment rate is starting to climb and the citys reputation and atmosphere is starting to decline:fingers-crossed-emo

[Marcarl]

Back in '76 I was a meat manager at Zehr's Markets, a local grocery chain. We got ourselves a union and then went to get higher wages and that was ok but the second time the boys wanted lots more. My comment at the time was: go easy, or we'll price ourselves out of a job. At that time we had a manager and a few meat cutters in every grocery store, today, only a meat manager and no cutters, it became more financially feasible to do the meat cutting at the processing plant, so now the are no meat cutters anymore. It's not better for the customer, but the bottom line will tell the tale.

And so it has happened with the larger economy. At $34 hr it's easy to find cheaper labour, and with the computer and machines we don't need the depth of knowledge on the floor anymore. We are in a global trading center. Today the cost of labor in China or India has an impact, and the sooner we realize that, the better will be our future. As for London, ya it's hard to take a 50% cut, but now they have nothing, it's a 100% cut. Our government should not have pumped millions into Cat without some strings attached, but that is a different story.

[MiCarl]

Our government should not have pumped millions into Cat without some strings attached, but that is a different story.

 

All governments should quit pumping the money all together. They raise taxes to the point that companies that have been there 50 years can't afford to stay, then throw cash at new companies to come in. It's insane.

[Rick Haywood]

There are not any jobs here in the states. The unemplyemnet figures lie when the say 9% are out of work, it is more like 15% because of the people they don't count. I have been out of work for 2 1/2 years and the only jobs I have found are $9 an hour jobs. When you do find one paying what I am use to making there are 150 people applying for it. Yoou have people applying for jobs that pay $60,000 that used to make $90,000. Now I would take a $60,000 a year job but can't find any. Hell I would take a $35,000 Job. Lucky for me I had money put away and only owe on my house or I would have had to take the $9.00 an hour job. Biggest issue is that the money I am spending now was to be spent after I retired. Six more years till retirement.

[GolfVenture]

I've been hearing that the economy is looking up. Well it maybe looking up for those who meet and look at it, but not for those who does the work.

[Carbon_One]

I've been hearing that the economy is looking up. Well it maybe looking up for those who meet and look at it, but not for those who does the work.

 

So true. And what KarlS, Marcarl, & MiCarl all say is true as well. Folks who no longer can collect unemployment benifits are dropped off the list thus no longer are they counted. Goverment should stay out of the freemaket and let the companies either sink or swim. Seems like the only ones not at risk are the managment types. Once they know they're not getting a life raft thrown at em they'll wise up with better management polices. Yey there'll be some hurting till it all settled out but I think in the long run the country will be better off.

Larry

[XV1100SE]

Mark's Work Wearhouse pull Caterpillar boots off shelves in support of workers

http://www.thestar.com/news/article/1126570--mark-s-work-wearhouse-pulls-caterpillar-boots-to-protest-closure-of-london-plant?bn=1

[CaptainJoe]

Marcarl is spot on...

 

The CEO's and corporate execs get rewarded for leaning out/cutting costs for business.

 

The execs are not loyal to workers, as, the workers are viewed simply as a resource.

 

The current trend is to distribute wealth amongst the CEO's and execs, announce bankruptcy, then terminate all Pension and Health care for retirees.

 

*Pensions and health care need to be at the individual level so this cannot happen. that way if you change jobs or retire, nothing a company does will affect you... after all, they are working towards whats in their best interest ...Not yours... LOL

 

*Instead of going from $16 to $28 an hour... perhaps the wage should have stayed at $16 and in profitable times, stock in the company should be given to the workers. That way the harder you work the more you get rewarded and in hard times it's not as devastating to anyone. Also, gives workers a say on how much these CEO's and execs are making...

 

Really feel for those in this boat and honestly believe, at some time or another, it will "affect us all".

[rickardracing]

Don't be surprised that once they get the concessions, they sell the company. Makes the company more appealling to a buyer with the lower operating costs. This happened to a large company here in Michigan. The employees made the concessions, the company was sold shortly thereafter, plant was closed, work shipped somewhere else.

 

I am not a union worker. Never have been. But I do work in the tool & die trades. 30 years now. The real world. A world where if you do not do your job......your fired. If you consitantly show up for work late....your fired. Take too many days off....your fired. No exorbinant bonuses. No being payed more than your skill level. No union rep to keep you employed. The unions have gotten too fat for too many years. Companies want to make a certain profit margin. When operating and legacy costs of union workers get to be too much and a company can no longer increase the price of their goods because the market will no longer bare it, workers loose out everytime. I was making $30 an hour as a leader/designer for a mold shop. I ran 3 out the 5 departments. The owner wanted to spend his days on the golf course and his nights at the strip clubs. They closed. I now make just over half of that. Sorry....no pitty from me. I live it every day.

[Marcarl]

Just something else to keep in mind,,, ok this isn't purity, nor do I mean to say that there is no other way,,,, but:

A company is created by the owner, for the benefit of the owner. The owner is most likely an individual at first and down the road may post stocks and become a conglomerate., still we have an owner or owners. The company's interest is for the benefit of the owner(s) and so workers are hired as necessary, that's employment. When a machine is no longer making an expected profit it is discarded in favor of another idea, and so it is with hired help. Although it would seem 'christian' to worry about the future of the employee, the reason for the company, is the owners, so they come first,,,, and the idea is that somewhere down the line they might be playing golf all day,,,,, hey, that's ok, they spent the hours, got educated, (or not) but most importantly put up with the risk and made the investment to make it or break it. They might have had to work 20\24\7 or maybe not, but they started it and govern it. Bleed too much out of the company by the demands, and the company will go where it is more profitable, that's their prerogative,,,, make it pleasurable and profitable for them to stay, you may continue to have a job,,,,, yes, even when you are the employed you have risk.

In N.America we live in a free country, and that means you can start your own company anytime, assume the risks, (caution:you might go broke) and in time, go play golf all day. Or you can work for somebody else, and the only income risk you have, is that you'll have a job tomorrow. If you have not over spent on your earnings, you will still have your house, car and toys. If you have assumed too much risk (debt) then you may loose some things, but hopefully you'll not loose it all as the owner might if the business goes bad.

Just some thoughts.