January 26, 2012

Canadian Auto Workers to picket Caterpillar dealers, service centres

The Canadian Auto Workers announced Thursday it plans to set up information pickets at equipment centres and dealers of Caterpillar construction products.

The protest is over a labour dispute at Electro-Motive Canada in London, Ontario, which makes locomotives and is owned by Caterpillar Inc. (NYSE:CAT).

CAW claims EMD has locked out Local 27 members in London and is asking for a pay cut of about 50 per cent. In addition to its protest in London, CAW has scheduled Thursday information pickets in Montreal, Winnipeg, Edmonton, Surrey, British Columbia, Chicoutimi, Quebec and in the Ontario cities of Windsor, St. Catharines, Sudbury and Concord (north of Toronto).

The CAW announcement came the same day Caterpillar reported a 2011 profit of US$4.928 billion on revenues of US$60.138 billion.

“Caterpillar is in no position to cry poor,” reads a CAW leaflet. “It enjoys record level profits and executive compensation. Caterpillar CEO Douglas R. Oberhelman saw a salary of $10 million last year alone, which was doubled from the year before. But Caterpillar says its workers have to cut their wages in half. Or else.”

On its balance sheet at the end of 2011, Caterpillar reported liabilities of US$10.956 billion for post-employment benefits alone.

EMD was part of General Motors Diesel Division when the London plant was opened in 1949. Based in LaGrange, Illinois, EMD was acquired by Caterpillar subsidiary Progress Rail Services in 2010. Its London plant is on Oxford Street east of Clarke Road, across from General Dynamics Land Systems’ armoured personnel carrier factory, which is also a former GM Diesel operation.

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