Caterpillar has a new six-year agreement with its United Auto Workers Union. The new agreement is effective immediately.
Peoria Local 974 did not approve the contract, but the other four locals covered under the UAW Central Agreement had enough votes to pass the deal. The other UAW locals covered under the Caterpillar Contract are Aurora, Pontiac, Decatur and York, Pennsylvania.
Both UAW and Caterpillar are calling it a good deal.
Labor grade three, tier-one workers will receive a combination of two-percent wage and market-based increases over the life of the deal. That’s with the exception of the 2nd and 3rd years, when they will receive the greater of either a $1000 lump sum payment or market-based wage increases. Tier-two workers get a two-percent general wage increase for the first two-years, with market-based raises for the last four years of the deal.
Some believe the UAW Local 974 majority voted against the contract because tier-two workers will end-up making about two-dollars an hour less than than their tier-one counterparts. A majority of Peoria based UAW members are tier-two. By the conclusion of the contract the difference will be roughly $25 an hour compared to $23 for Labor Grade Three tier one and two workers.
The Caterpillar UAW Central Agreement covers about 5,000 people in 11 facilities. The each of the five represented union locals also have individual contracts.
Local 974 members cast a single vote Sunday for both the Central Agreement and its local contract. The majority no-vote means the local agreement also failed. Caterpillar’s Director of Labor Relations says the company expects the UAW to work closely with Local 974 to achieve a ratified local contract shortly.
The Caterpillar statement also says under the terms of the new Central Contract all UAW employees, including those in the Peoria-area, remain on the job. In fact the agreement includes a no strike, no lockout provision.
Members of Local 974 Union cast another vote Saturday, April 1st for their local agreement. The vote is at the East Peoria Union Hall from 1:00 P.M. to 4:00 P.M.