Caterpillar Reaches 6-Year Labor Pact

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Caterpillar and the United Auto Workers have agreed on a six-year labor agreement covering three plants in Illinois and a distribution center in Pennsylvania, according to news reports.

Union members will vote on ratifying the pact on March 12. If ratified on the first vote, the agreement calls for a $6,000 bonus for members.

The proposal calls for a 7 percent wage increase upon ratification, and a 4 percent jump in 2025, 2027, and 2028. The company will boost its contribution to 401(k) programs to a 75 percent match up to 6 percent of eligible pay, up from 50 percent.

Other changes to the labor agreement include the elimination of random marijuana screening, nor will they be disciplined or discharged for off-shift use. Employees reporting to work under the influence will still be subject to “reasonable suspicion testing.” 

Separately, the Wall Street Journal reports that the tentative agreement includes a promise to not close any union factories during the six years covered by the pact.

About the Author

Rod Sutton

Sutton served as the editorial lead of Construction Equipment from 2001 through 2025. 

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