Published On: Wed, May 30th, 2012

Union Urges Caterpillar Workers to Reject Revised Contract

Union leaders at the Caterpillar Inc. plant, based in Peoria, Illinois, say that they will urge striking workers to reject a revised contract offer.

“It is still a terrible contract,” said Tim O’Brien, president of the local branch of the International Association of Machinists and Aerospace Workers (IAM), reported Wall Street Journal.

About 780 workers at the factory walked off the job about a month ago and are still on strike. The union members, who earn between $13 and $25 an hour, are asking for better wages and health care, at a time when Caterpillar is earning record profits, according to union officials.

After the previous seven-year contract expired, union workers authorized a strike after overwhelmingly rejecting the company’s six-year contract offer.

Caterpillar is currently offering a $1,000 bonus to every employee if the workers ratify the contract on or before June 10. The company is also offering workers eight hours of extra pay if they ratify the contract by Wednesday and return to work immediately, in addition to bonus payments as high as $2,100.

Managerial employees are currently operating the plant.

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