Caterpillar Closes 62-Year-Old Plant in Canada to Take Advantage of Cheaper, Non-Union Labor in Indi

[The Straight Story]

Caterpillar Closes 62-Year-Old Plant in Canada to Take Advantage of Cheaper, Non-Union Labor in Indiana

Job outsourcing is now a two-way street for the United States. Once the victim of companies taking jobs overseas where labor is cheaper, the U.S. is now receiving new employment from an American company that found Canada too expensive for its operations.

Heavy equipment manufacturer Caterpillar Inc. has decided to shut down the 62-year-old Electro-Motive Diesel (EMD) locomotive assembly plant in London, Ontario, and relocate operations to Muncie, Indiana. The move came after a labor dispute erupted between the company and its Canadian unionized workers, who refused to accept a 50% cut in their pay and benefits. Caterpillar purchased EMD in June 2010.

By relocating to Muncie, Caterpillar is expecting to save money by employing non-union employees. In London, the average hourly wage was $34. Down in Muncie, Caterpillar’s outlay will range from $12 an hour for assemblers to $18.50 for maintenance technicians.

Between 2005 and 2010, Caterpillar’s overseas workforce grew by 15,900 employees. During this time period, the company added only 3,400 Americans to its payroll.

http://www.allgov.com/Top_Stories/ViewNews/Caterpillar_Closes_62_Year_Old_Plant_in_Canada_to_Take_Advantage_of_Cheaper_Non_Union_Labor_in_Indiana_120214

[Brickbat]

1. And the race to the bottom continues.

[peace13]

2. Oopps to my Canadian friends who we have been trying to warn since *

The beginning of the end is here. The sucking sound is your jobs heading overseas. The wireless taps without permission is your privacy evaporating before your eyes. We tried to warn you. It is over for all of us!

[dmallind]

3. Some things that piece misses out strangely

1) It's been a US owned company for every one of those 62 years (and in fact 19 more since GM bought it in 1930). Since almost everybody here thinks US companies outsourcing to foreign plants is bad, how is the reverse also bad?

2) The company HQ (EMD, not CAT) is in the US.

3) The gain in international SALES for Caterpillar has far outstripped that of overseas workers. What doesn't make sense about building close to your customers?