The largest manufacturer of construction equipment Caterpillar Inc. has announced the end of around 4-month strike among its 800 workers at a plant located in Joliet, Illinois. The workers have ratified a deal, a 6-year labor agreement.
The manufacturer had to offer more than triple the bonus to the union members ($3,000 per member) for approving this deal. The workers who were on strike since months will return to work next week as said by Rusty Dunn, the spokesman of the company. The plant in Joliet focuses on developing hydraulic components and other systems that are used on Caterpillar loaders and mining trucks. Caterpillar’s office workers and temporary labor were working on this plant who underwent strike. As of now, the company has announced that it maintained the production levels.
The strike begun on May 1 after a union discarded initial contract that was supposed to hold $5,000 ratification payment to each member. The contract also included participation in the annual bonus plan of Caterpillar. The vote margin is yet to confirm. Rejecting the deal has a specific reason where union claimed that the deal did not include enough pay raises and called for higher health-care costs.
Earlier this week, Caterpillar disclosed a tentative contract that shows 3 percent of pay rise to workers who were recruited after 2005. Those who were hired before to 2005 will not receive any pay raise as they already received more than what market wages are.