Labor relations at Caterpillar
Nothing is more familiar on a construction site than the bright yellow heavy equipment manufactured by Caterpillar, Inc. Since as early as 1883, caterpillar equipment has seen use in every form of heavy construction, earth moving, agriculture, and military use. This company was started as a small wooden wheel-producing factory, and has since grown into the international giant and leader in construction machinery production. In 1883, the Holt brothers founded the Stockton Wheel Company, with the purpose of seasoning woods to enable them to be used in the arid midlands of California and surrounding deserts. The wooden wheels manufactured were to be the companies first venture into vehicular products. Taking a step beyond the manufacture of wheels, in 1886 the Holt brothers improved upon an existing agricultural machine, the combine. Replacing the traditional gear system, which was used to transmit power from the ground wheels to the machines inner workings with a flexible chain belt system, greatly reduced the amount of time spent repairing machine breakdowns. The Holts next tackled the biggest problem in agriculture
The company, made known its concerns about the long-drawn-out slump in its domestic markets, its competitive position in world markets, and the possibility of being forced into an unfavorable settlement. It is also essential to de-fragment the causes of the labor strikes that plagued Caterpillar's years from the 1990's and on into present day production. There were other problems lurking in the background of the dispute. The union rejected the contract offer, which it characterized as a "pittance and a continued avoidance of serious, traditional bargaining" (Cimini, 1998). To understand the overall significant impact of labor disputes in Caterpillar's past history, it is necessary to understand the considerable contributions of the United Auto Worker Union, and the National Labor Relations Board. The 1991 bargaining round began on July 10, when company and union negotiators met to discuss ground rules for renegotiating their collective bargaining agreement that was set to expire on September 30. During the remainder of 1992 and into 1993, there was little progress made between the union and Caterpillar. In June 1994, over 13,000 workers began the strike, demanding the reinstatement of 14 fired workers and the resolution of nearly 150 unfair labor practice claims against Caterpillar filed by the NLRB (Lariscy & Bloodworth 1995). It was operating in the red, in contrast to the huge profits it had earned in the mid-to late-1980s. Immediately after the expiration of a strike deadline on November 4, approximately 2,400 union members walked off their jobs at two plants in Decatur and East Peoria, Illinois. The company further explained that a returning striker, an employee recalled from layoff, or a permanent new hire, could replace them. The 1908 sale of 25 of these caterpillar-type tractors to the engineers of the Los Angeles Aqueduct gave Caterpillar the credibility and sales they needed to further expand. Throughout the decade, Caterpillar would be forced to deal with striking workers three times, each ending on agreeable terms. Developing a steam driven tractor, which could haul up to fifty tons of freight at three miles an hour, helped farmers to reduce the amount of money spent on maintaining large horse teams, and the men who worked them.
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