Understanding Strikes

Strikes impact everyone – especially our production workers. It’s important for you to understand the risks and impacts to you should a work stoppage or strike occur.

It's Your Decision

It is your lawful right to choose to join a strike or come to work. One of the first steps in the process is a strike authorization vote. 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. All UAW-represented employees have the right to participate in a strike and have an equal right to not participate and continue to work. Through our contingency plan, we will be open for those employees who wish to work. The decision is yours to make, and Caterpillar will not interfere with your decision.

  • If you choose to cross the picket line while remaining a member of the union, you are subject to its bylaws and internal procedures. The UAW may seek to fine you for exercising your right to work. By resigning your membership prior to returning to work, you may avoid this action by the UAW.
  • Employees who are non-members or who have resigned their membership prior to returning to work are not subject to the union’s bylaws and internal procedures.
  • 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; and 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).
  • You cannot be terminated by Caterpillar for participating in a strike. Your employment cannot be blocked by the UAW for electing to work during a strike. 
  • If a 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).
  • If Caterpillar and the UAW cannot reach an agreement during an economic strike, Caterpillar has the right to hire permanent replacement workers.
  • The labor contract prohibits Morton and York from participating in a strike. 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).

What Happens to Your Pay and Benefits During a Strike

  • Pay: You will not receive any wages from Caterpillar. You may be eligible for a small strike stipend from the UAW provided you meet their eligibility requirements.
  • Unemployment: In Illinois, you are not eligible for unemployment insurance benefits during a period of strike.
  • Incentives: Like any absence, days missed due to a strike will reduce your Rewards payments.
  • Overtime: In addition to losing wages for missed regular schedules, employees will miss the opportunity for overtime at premium pay.
  • Retirement: 401(k) contributions – both yours and Caterpillar’s – are stopped.  
  • Paid Time Off: You will not accrue earnings while on strike. Since vacation pay is based on prior year’s earnings, you will have a lower vacation payout in 2024.
  • Health Care: Your health care coverage may be terminated.

What a Strike May Cost You

An employee at the top of Labor Grade 3 who is working 8 hours of overtime per week would lose close to $700 per week after strike pay, plus the above benefits losses. A four-month strike would cost over $10,500, plus Rewards impact, vacation impact, 401k match loss and potential health care coverage loss. 

Table displaying: Total Caterpillar Weekly Pay $1183 minus Strike Weekly Pay $500 equals $673 Loss per Week
of
Table displaying: Total Caterpillar Weekly Pay $1183 minus Strike Weekly Pay $500 equals $673 Loss per Week

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

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