What Happens During the Negotiations Process?

Caterpillar and the UAW meet to negotiate in good faith over wages, benefits and other working conditions. Each side identifies their issues and concerns, shares their perspectives and proposed solutions.

The goal is to find solutions that are acceptable to Caterpillar, our employees and the UAW that position these facilities for long term success.

If an agreement is reached by the negotiation teams, then that tentative agreement must be ratified by a vote of employees.

If an agreement is not reached by the negotiations teams or not ratified by employee vote, the union may elect to call a strike or the company may elect to lockout employees.

  • Caterpillar determines changes needed to ensure competitive and efficient operations of facilities.
  • Caterpillar anticipates issues to be put forward by UAW.
  • Caterpillar completes our normal contingency planning including training of contingency workforce.
  • Caterpillar and the UAW have not yet set dates for negotiations. In past years, initial offers were presented in December or January.
  • Caterpillar and the UAW present initial contract proposals. 
  • Both parties discuss core issues and investigate potential solutions. 
  • Caterpillar and UAW continue to negotiate in good faith to reach tentative agreement.
  • If tentative agreement is reached, the terms of the agreement are communicated to employees.

Tentative agreement is reached and employees hold ratification vote on new agreement.

  • The new contract takes effect and work continues as normal.

UAW may choose to call a strike.

  • Caterpillar deploys contingent workforce made up of support, management and contract employees to keep business operations running.
  • The strike continues or negotiations may resume until Caterpillar and UAW reach an agreement.
  • Caterpillar continues to operate facilities through contingency plans to serve our customers.
  • The UAW may not choose to call for a strike. The parties could agree to work under an extension agreement or without a contract in place.

We aim to reach an agreement that positions Caterpillar, our facilities
and our employees to compete and succeed long into the future.

   Understand what is at risk if you choose to strike

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