Possible Strike is Averted at Caterpillar Inc as Management Reaches an Temporary Agreement With the Union

• Caterpillar Management has reached a tentative agreement with the Union leaders as a result of which possible strike is averted at Caterpillar Inc.
• The company is yet to decide on the contract extension with labor for the next six years while the union has pressured Caterpillar Inc. to consider the adjustments on the grounds of inflation. 
• One of the Facebook pages of the union reveals that they have unanimously voted for a strike.

On Wednesday, the tentative agreement between the union representing workers and Caterpillar Inc reached four facilities, leading to a walkout. This happened during a time when companies are dealing with a shortage of labor on large scale.

Apart from this, a new six-year agreement is yet to be put to vote by employees regarding equipment makers. All this is happening when the union workers have threatened strike and negotiated wage increases, safety measures, and better healthcare benefits.

The company has more than 100,000 employees around the world and has been struggling with margin pressure due to rising input costs. Meanwhile, there are demands from labor unions in the US to adjust the cost of living on the grounds of rising inflation.

“Members at four locals in Illinois and Pennsylvania will review the tentative agreement and vote at upcoming ratification meetings,” United Auto Workers (UAW) said in a statement on Wednesday.

The current agreement shall soon be extended until the voting gets completed and the UAW will schedule the ratification vote soon. The negotiation between the UAW and Irving, Texas-based manufacturer will begin on 5^th Jan as per the company.

Around 7000 union employees which represent UAW have been covered in the contract from 3 manufacturing plants in central Illinois and a distribution center in York, Pennslyvania.

At the Caterpillar facilities according to the Facebook page of local unions, the workers voted to strike unanimously in January. 

Amongst all the chaos it is important to see what decisions Caterpillar Inc. takes in order to skilfully retain the workers and avoid the strikes. The new agreement is going to be very crucial and will decide the coming year’s human resources.