ON company locks out workers, demands wage cuts > 50%

Sounds like Caterpillar is orchestrating the labour dispute so it will have a pretext of moving the jobs to the US where it can take advantage of unemployement to pay $12 an hour for skilled labour and so it can bid on public contracts with "made in america" restrictions. The London operation is already profitable and CAT only bought it last year, so I can't see what other excuse they have.

mmmmm, dont we just love Obama and his 'buy America' plan ....

We also have one company in Quebec that locked out their employees on new year's eve. Rio Tinto Alcan, 800 employees in Alma. The biggest employer of the city. There, the company keeps the high wages (an average of 80 000$/year for people who didn't even finished high school) but the union demanded to be paid even if there was no work to be done. Gotta love the union when the company will just decide to close the shop.

Give a union the power to take what they want and you'll be giving that union the power to destroy their own livelihood from the interest demanded.

So how does that apply to a profitable corporation that is demanding its skilled workers take a 50% pay cut to unskilled labour pay scale?

Also, I think it's a popular urban myth that companies go under because Unions demand "MORE". Usually, modern labour disputes arise because the company tries to force lower pay/poorer work conditions. And usually, in modern disputes, the Union eventually gives in.

It's also BS that a Union can "take what it wants". Strikes are expensive and workers don't get paid, the union doesn't collect dues, workers don't accrue pension credits, I don't even think they accrue EI service when they're on strike. Management still gets paid though, so really they have the ability to stick it out longer. And workers at least have an interest in not putting themselves out of job. Sometimes business owners don't have an interest in returning to work (i.e. when they are planning to cannibalize the business, as is suggested is the case with CAT and has been done elsewhere).

Am I the only one whe actually read and understood the aticle???


"To get a flavor of the problem, consider recent reports of changes at Caterpillar, one of the nation’s largest manufacturers. In the past, a typical worker received a package that averaged about $25 an hour in pay; with benefits included the package was valued at $40 an hour. Under the new contract, NEW EMPLOYEES would receive $12 an hour and an additional $9 per hour in benefits. Explaining this shift, a group president at the firm commented that, “There is a balance that must be struck between being competitive and being middle class” (Uchitelle 2006)."


That's still $21.00 per hour starting wage!

So if we keep pushing down wages for more and more of he middle class, Yogi, who's going to buy your floors? Are there enough 1 percenters around to keep you busy?

You betchera$$ there is! I derive a good portion of my income from corps. as well.

And those corps, where do they make their money from? We keep hearing how the consumer has to be the engine that drives us out of recession. And that China is faltering because not enough people are consuming and buying their crap, which means they won't be buying our natural resources. How will this all work if you keep shrinking the middle class?

No it's not. It's 12$ per hour plus benefits. I don't know about you but I can't make mortgage payments on 12$ per hour, or 9$ in benefits. That's a wage you pay young people starting out, not skilled workers building locomotives. This is a disgusting attempt at justifying moving the production to the U.S. or Brazil.

Calm down my naive friends. Is it possible to destroy middle class in the country? Yes, it is You have some wrong points of view of it. Andyt, Yogis floor will be bought, but he will make it worse and cheaper, or wellcome of China goods invasion.
But my speech won't be about this. So, look at my well loving native country. Using your imagination of middle class, we don't have it at all. We have people, who earn money in a day, that every Canadian see this money in dreams only. And the bottom( 99%), who just work, it doesn't matter own bussiness or state job. Sometimes, those who have own business earn less than those who work on government job. So, there is no job at all, especially for yound people, old pricks keep their working places till they die since Soviet Union, and I understand them why, pensions are miserable. So what country is doing:
1)it puts down quality standarts - It's cheaper, but it sucks
2) you will be faster shiting with chease, than grow up your business without bribes
3) "Tho bottom" has no choice and works on every job, if family consists of 2, 1 is working for food and utilities. So noone claims that his payement was cut, he thanks to god that he is not fired.
4) Sometimes it's better to be homeless in another country than "middle class" in one.
So here is the result of middle class cut, your country is far from it.
So everyone is kissing Canadian flag today and has fun on CKA.

CAT is not negotiating in good faith. A pay cut in excess of 50% is not reasonable.

I'm no fan of unions, but in this case the union is not the biggest arse at the negotiating table.