Caterpillar to Impose Rules Unless UAW Resumes Talks
May 10, 2011
PEORIA, Ill. -- Caterpillar Inc. said it told the United Auto Workers union it would impose new terms of employment for workers in October unless the UAW agrees to resume contract negotiations. The maker of construction equipment and diesel engines said it has reached an ``impasse'' with the union since the UAW's 18-month strike ended without a contract in December. The UAW rejected Caterpillar's contract offer in December, primarily because Kavanagh had discharged dozens of workers for union activism. Union officials have asked for all of those discharges to be reviewed through arbitration, but Caterpillar is willing to arbitrate only those cases following last year's 18-month strike. Responding to the company's move, the UAW said it would contest Kavanagh's declaration of an ``impasse'' and said the company was trying to impose ``selected provisions of a contract which was overwhelmingly rejected'' by members. The new employment conditions are much like those currently in place, but they would include some changes, such as improved job security and higher pension levels. A spokeswoman for Kavanagh said the company needed the changes for planning purposes. She added that employees have been working under terms that were installed as far back as 1992. ``We still would prefer to have a signed agreement,'' she said. ``That remains the goal... . But business goes on, life goes on.'' Caterpillar said it would consider proposals from the UAW, but it won't change its stance on the discharged workers. The company said it doesn't expect to see any cost savings as a result of the new employment terms.
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