Caterpillar Inc. : Caterpillar, Striking Workers in Joliet, Ill., Reach Tentative Deal
08/15/2012| 03:05pm US/Eastern
By Bob Tita
Caterpillar Inc. (CAT) and striking machinists at an Illinois assembly plant have reached a tentative agreement on a six-year contract.
Members of the International Association of Machinists and Aerospace Workers are scheduled to vote on the deal Friday. Wednesday, Caterpillar said negotiators for the company and the union settled on the agreement Tuesday. Neither the company nor the union is releasing details about the deal, which would cover about 780 employees at Caterpillar's Joliet plant where hydraulic components are made for Caterpillar's construction and mining machinery.
Workers walked off their jobs May 1 after rejecting an offer from the Peoria, Ill., company that would have frozen wages for workers hired before May 2005.
For workers hired after 2005, the company was willing to adjust their wages based on its assessment of local labor-market pay rates. Workers would pay more for health insurance and transition from a defined-benefit pension plan to a standard 401(k) retirement-savings program. Caterpillar also demanded more flexibility on assigning workers to different shifts.
Caterpillar's stock was recently down 0.3% at $87.61 a share.
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