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The Mackinac Center Director of Public Policy Vincent Vernuccio on Caterpillar’s effort to end automatic cost of living wage increases and institute...
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-- aren't Caterpillar the focus is its novel way to deal with labour even though Caterpillar is expected to earn record profits this year.
The company is pushing to freeze pensions.
And wages and as you might imagine if it is not sitting well -- employees and some of their union workers have been on strike for more than three months.
So -- equipment -- securing its future.
Resume digging -- on -- we turn to -- forget you direct.
Of labor policy the Mac cannot senator told us most -- you Vinny.
Listen you can call me anything that you walk by -- video awards justified but haven't done they are coming on.
Let's get right down to -- -- this really interesting I mean you have Caterpillar.
Earning a record four point nine billion dollars in profits in their outlook for 2012 is even better than that at the same time they're saying look.
We have to control costs and long -- we've seen what's happened with other pension programs he'd look at the auto industry.
We're not gonna let that happen to west were freezing pensions and they also want to freeze wages and the employees don't.
Like -- you think about what -- -- -- -- got a chance to go through the contract right before the proposed contract right before I came on.
And you know there was something really not one that I mean from all the news reports you're hearing that yet they're gonna freeze wages you know they -- -- -- -- -- to freeze automatic cost of living increases what they're also proposing is and this is a real novel idea for up for unions.
If given merit increases give incentives.
Give extra -- to people that actually work harder and if they meet goals so all this talk about them freezing wages and -- being stagnant.
Is actually just talking about automatically -- is not think that these employees.
Check in on top of that when you look at the actual numbers they want to freeze wages for their top tier workers as -- people have been -- seven years or more and they make an average of 26 dollars an hour.
Or 55000.
Dollars -- before overtime.
Which is thirty that's percent above the market average for this employees there aren't making a lot.
-- -- That -- -- -- there already getting over a third more than the market and the market rates usually say would allow.
So when they're saying well we need more we need more we need more -- mean these guys are not making poverty level wages.
What -- you may -- is that if you look at the executives -- -- let me just but it right here you look at the executives view.
You look at the CEOs and the management level folks that they air -- has really increased because they've turned these record profits and they've.
Expanded margins so they're saying well you know you guys are taking more.
Or pay what about the little -- While the little guys have actually been getting incentive bonuses part of the argument that capital is making is that hey we had a greatly you know last year and you the workers you've got bonuses.
You got to partake of that.
So I -- really -- comes down to them saying well we the union saying that you need us to make more money not.
By your hard work you can make more money and you can get ahead on your -- and that really is a threat to these unions.
Because the kind of takes -- out of the equation -- hard work is what -- chart worker ahead.
Not the union.
And Caterpillar is no joke I mean they've been in this before they locked out 450 workers in London Ontario when they were in a similar fight in the ended up closing the factory altogether -- When they could make a deal.
In the mid ninety's they really vanquish the UAW after a seventeen month strike so they are top.
Do you think they're setting the example for the industry.
Or they possibly stirring a whole lot of trouble when maybe they don't have to equities back.
I think -- probably setting the standard for the industry you know the union largesse and a lot of this for a lot of the unions he's forced unionism states.
Have grown so large and taken so much from companies I mean all you have to look at is the Big Three and what happened they are.
And states like Illinois and Indiana and Michigan.
And you see what happens when companies constantly -- -- into union bosses demand so Caterpillar is drawing a line in the sand.
And by the way not to say that you know there -- not had they don't have lay out very formidable adversary.
Remember this is the machinists union this is the union that -- striking Boeing and a strike and has struck many companies before so you're seeing Q heavyweights.
Really -- -- a -- is that each other here.
Yes and we certainly invite them both on the show I -- we reached out to the CEO of the company.
He has not accepted our invitation at this time I'm sure it's gonna come on at some points talk about as a very existing issue thanks for joining us appreciate it.
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