Caterpillar, UAW Reach Agreement

Caterpillar Inc., Peoria Ill., has reached a tentative, six-year agreement with its United Auto Workers employees, according to a report in the Chicago Sun-Times.

According to the paper, union negotiators recommended that Caterpillar workers in four states vote to approve the new contract that would increase wages and benefits. Workers had rejected two previous offers.

Both Caterpillar and the UAW have declined to disclose the terms of the agreement, which was reached Dec. 15 following a year of negotiations. The Sun-Times reports that talks ground to a halt partially over requiring employees to contribute to their health care costs.

Union negotiator Dave Chapman tells the paper that the new agreement includes “movement in every area,” compared with the offer workers rejected in August.

Caterpillar’s nearly 9,000 union employees in Illinois, Colorado, Pennsylvania and Tennessee have worked the last eight months without a contract, according to the Sun-Times.

The contract is still pending approval by the workers, who will vote Jan. 8-9.

Caterpillar is optimistic that they will accept, company spokesman Ben Cordani tells the paper.