Caterpillar to Resume Talks With Steelworkers

http://online.wsj.com/article/SB10001424127887324102604578496031561208230.html

Union members at the plant, which produces mining equipment, three weeks ago rejected a six-year contract offer from the Peoria, Ill.-based company. Their previous contract expired at the end of April. Since then, the approximately 800 workers at the plant have continued working, and the USW has called for renewed talks.

Caterpillar's offer provided for no automatic pay increases and would give the company more flexibility to lay off workers without regard to seniority.

Caterpillar had promised to maintain current wage rates for existing employees at the plant but provide for possible bonus payments that could total $18,000 per worker over six years. The company would be able to hire new workers at lower wages.

Wages at the plant currently are about $18 to $34 an hour.