Cat workers reject ‘final offer’

PEORIA, Ill., (April 27, 2004) — About 8,000 Caterpillar workers are poised to hit the picket lines after turning down a six-year contract that the heavy equipment and truck engine maker has called its final offer.

However, the United Auto Workers — representing about 8,000 active workers at Cat facilities in Illinois, Pennsylvania, Colorado and Tennessee — told the employees to report to work despite the fact their current contract expired Sunday night. The union’s bargaining team is currently meeting to assess the situation and plan its “next steps,” according to the Associated Press.

Under the company’s offer, veteran employees, who make more than $20 an hour, would receive only small cost-of-living increases, the news agency reported. According to a summary of the proposal the union provided to members, all employees would receive a $3,000 bonus this year if the offer is ratified.

Caterpillar reported record first-quarter profits of $412 million last week and raised its full-year outlook for earnings and revenue.

— from Associated Press