Workers at Caterpillar’s Joliet, Ill., factory went on strike this week, according to Reuters and other news agencies. About 800 workers went out Tuesday after one of the company’s union contracts expired with little progress towards a new contract made. The employees, represented by the International Association of Machinists and Aerospace Workers union, rejected Caterpillar’s six-year contract offer in a vote Sunday night.
Caterpillar responded by bringing in replacement workers to stay on production schedule. The striking workers produce hydraulic components and systems for a variety of Caterpillar machines, including track-type tractors, wheel loaders and mining trucks.
The dispute comes at a time when Caterpillar is under pressure to respond to growing demand in North America and in the global mining sector. Although demand has slowed in China, Europe and Brazil, demand in North America has helped offset that slowdown.
The IAM strike follows a labor dispute late in 2011 between Caterpillar and the Canadian Auto Workers union in London, Ontario, which the company ended up closing down. Union officials said the Caterpillar offer amounts to “wage stagnation” over the next six years, while charging higher health care premiums.
Caterpillar has called its offer competitive.