At Caterpillar, Pressing Labor While Business Booms

JOLIET, Ill. — When it comes to dealing with labor unions,Caterpillar has long taken a stance as tough as the bulldozers and backhoes that have burnished its global reputation.  Be it two-tier wage scales or higher worker contributions for health insurance, the company has been a leader in devising new ways to cut labor costs, with other manufacturers often imitating its strategies.

Now, in what has become a test case in American labor relations, Caterpillar is trying to pioneer new territory, seeking steep concessions from its workers even when business is booming.

Despite earning a record $4.9 billion profit last year and projecting even better results for 2012, the company is insisting on a six-year wage freeze and a pension freeze for most of the 780 production workers at its factory here.  Caterpillar says it needs to keep its labor costs down to ensure its future competitiveness.

The company’s stance has angered the workers, who went on strike 12 weeks ago.  “Considering the offer they gave us, it’s a strike we had to have,” said Albert Williams, a 19-year Caterpillar employee, as he picketed in 99-degree heat outside the plant, which makes hydraulic parts and systems essential for much of the company’s earth-moving machinery.

Read more: http://www.nytimes.com/2012/07/23/business/profitable-caterpillar-pushes-workers-for-steep-cuts.html?pagewanted=1&_r=1&hpw

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Pay Frozen For Most Boyertown School District Administrators

The Boyertown School Board has voted to freeze most administrators’ salaries for the 2012-13 year, saving the district nearly $70,000.

Dr. Dion E. Betts, superintendent, had requested that the board freeze his salary earlier this month.

At its meeting Tuesday, the board approved the freeze unanimously for a savings of about $9,000.

It also voted 7-2 to freeze the salaries of all of the district’s 17 principals, assistant principals and special-education directors, for a savings of about $60,000.

Read more: http://readingeagle.com/article.aspx?id=388974

Fleetwood School District Administrators Freeze Their Pay

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Facing a budget gap as large as $2.4 million, Fleetwood School District administrators have agreed to freeze their pay for a second straight year.

Dr. Paul B. Eaken, superintendent, announced the move at a school board meeting this week.

The administrators’ contract with the district is set to expire at the end of the school year. The group has agreed to a one-year pact that does not include salary increases.

Eaken said administrators did not feel it was appropriate to accept pay raises when the district is facing financial difficulties that will likely impact students and staff.

Read more: http://readingeagle.com/article.aspx?id=366805