When do negotiations begin between Caterpillar and the United Auto Workers? 

We expect formal negotiations to begin in December 2022 or January 2023.

What happens during the negotiations process? 

Caterpillar and the United Auto Workers come together to identify issues, share perspectives and propose solutions with a goal of reaching an agreement that benefits both parties and positions our facilities for success. If an agreement is not reached, the UAW may call for a strike until a new agreement is reached. For more information, see the Negotiations Process fact sheet. 

What facilities are covered by the contract? 

The facilities within the Central Labor Agreement include Decatur, East Peoria, Mapleton, Mossville, Morton, Pontiac and York, PA.

How often do you negotiate a new contract? 

Caterpillar and the United Auto Workers negotiate a new contract every 6 years.

We have received questions around what Caterpillar and /or the UAW might propose during bargaining. What do you think the proposal will be?

Our intention is to bargain in good faith with the UAW.  Part of bargaining in good faith is refraining from discussing Caterpillar or UAW proposals until after we have had an opportunity to discuss them directly with the UAW.  Caterpillar may choose to provide updates on the status of proposals later in the process, but only after we have first discussed those proposals directly with the UAW.

Why are you bringing support and management employees in to train for production roles? 

Caterpillar’s long-standing commitment to our customers and our business requires that we be prepared to continue operations at our facilities in the face of any business interruption, including a work stoppage. We are committed to bargaining in good faith and reaching an agreement that positions these facilities and our employees for success long-term. However, we must be prepared should we not be able to reach a competitive agreement, which is why having a successful contingency plan is critical. See the Contingency Planning fact sheet for more information.

Do you expect a strike?

As always, we’ll bargain in good faith and hope to avoid a work stoppage, but that is still a possibility that requires planning. See the Contingency Planning fact sheet for more information.

If there is a strike and I participate, how much will I get paid? 

You will not receive any regular or overtime pay from Caterpillar. In addition, your time on strike will impact your future vacation pay, you will not receive 401k match, and your healthcare may be terminated. You may receive a small strike stipend from the UAW if you meet their eligibility requirements. Please see the Understanding Strikes fact sheet for more information.

If there is a strike and I participate, how will my health care benefits be impacted?

During a strike, Caterpillar has the right to terminate healthcare benefits. Please see the Understanding Strikes fact sheet for more information on how health care coverage and other aspects of your Total Rewards package are impacted.

How are you going to keep everyone safe at the facilities if there is a strike? 

Safety is our top priority. Through our contingency planning, we have worked to ensure that our Caterpillar and contract employees are able to perform these roles safely. 

If the union elects to initiate a work stoppage, can supplemental employees go on strike?

Yes. Our supplemental employees have the same right to strike as our other production employees. All employees also have an equal right not to participate in a strike. Through our contingency plan, we will be open for business. Any employee who wants to continue to work may do so. 

Is the union’s strike pay taxable?

Yes.  However, those taxes will not be withheld from your strike pay. According to the UAW’s website, “After $600 in a given year, the UAW will issue an IRS Form 1099-MISC.”

If the union elects to initiate a work stoppage, can an employee be terminated by Caterpillar or the UAW for not participating in a strike?

No.  All employees have a right to participate in a strike.  All employees also have an equal right not to participate in a strike.  Caterpillar cannot discipline or terminate an employee for participating in a strike.  The UAW also cannot require Caterpillar to terminate an employee for exercising their right to continue working during a strike. 

What happens if there is a strike, but I want to keep working? 

Our production employees have a right to strike, but they also have an equal right not to participate in a strike. Through our contingency plan, we will be open for business. Any employee who wants to continue to work may do so.  

I heard there was recently a strike authorization vote. What does that mean?

The scheduling of a strike authorization vote is a routine procedure often conducted by unions during contract negotiations. It does not mean there will be a strike. The vote provides the union with the authorization to call a strike if they feel that is necessary.

If I come to work during the strike, can the union prevent me from working here after the strike is over?

No. If the labor agreement expires and the union elects to call for a strike, all UAW represented employees have a legally protected right to participate in that strike. (Note: Morton and York are not able to strike on March 1, as the labor agreement does not expire for those facilities on March 1). Employees also have an equal legally protected right NOT to participate in that strike. We will continue operations through our contingency plan and will be open for business. That is a personal decision for each of you to make.  If you elect to exercise the right to work during a strike, the union may revoke your membership and/or attempt to fine you. Employees electing to work during a strike may elect to resign their membership to avoid such fines. When the strike concludes and a new labor agreement is in place, under current contract language, all employees must maintain union membership.  However, under that language, the union must offer membership to you on the same terms as other members. Should they deny you membership for any reason other than paying dues, you may continue to work at Caterpillar (see Section 3.1 Central Agreement). Again, to be clear, employees have a legally protected right to strike. They also have an equal legally protected right not to strike. That is your decision alone to make. You cannot be terminated by Caterpillar for participating in a strike. Nor can your employment be blocked by the UAW for electing to work during a strike. 

If I work during a strike, can the union prevent me from working in the future by denying me union membership?

While our current contract does require production employees to be members of the union, that same contract explicitly states that the union must offer membership on the same terms for all employees and that membership cannot be denied, or terminated, for any reason other than nonpayment of dues. Employees can reference Section 3.1 of the Central Agreement.

Can Morton and York facilities strike when the contract expires on March 1?

No. Employees cannot strike while the labor agreement is in effect. For all facilities except Morton and York, the labor agreement expires on March 1. However, the labor agreement remains in effect for Morton and York after March 1. That includes the no strike provision. The agreement does not expire for Morton and York until 60 days after the next Central Agreement is ratified (see Section 19.1).

Can supplemental employees participate in the ratification election? 

Supplemental employees who are union members in good standing are eligible to vote in the same manner as full time employees.

Why haven’t some long-service employees received a pay increase over the last three agreements?

In 2004, employees in these Central Agreement facilities were well above the market in both wages and benefits.  As a result, these facilities were not competitive and were at risk of continuing to lose work.  To address this problem, the UAW and Caterpillar negotiated a market-competitive wage rate for future new hires as part of the 2004-05 Central Agreement.  Employees at the above market wage rates were allowed to stay on those wage rates until which time the market-competitive wage rates caught up.  Since that time, the market-competitive rates have caught up for 97% of employees, however there remains a small group of employees earning the above market wage rates.