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Opinion: Caterpillar Unions Facing Up to Reality

Today's UAW is not nearly as strong as it was in the 1990s, when it took its Caterpillar workers out on two bitter strikes. A big reason is that, over the past few years, the bulk of Caterpillar's investing has gone either overseas or to more business-friendly states at home.

March 09, 2011

Just over 100 ago, the company we know as Caterpillar began building track-type tractors at a plant on the banks of the Illinois River. From these humble origins in East Peoria—the factory had 12 employees when it started—this icon of the American Midwest has grown into one of the world's most competitive manufacturers, recently forecasting record profits for 2011.

The question is, how come its home state of Illinois has so little to show for it?

Part of the answer has to do with the unvirtuous circle created when organized labor—public as well as private—forgets it has an interest in a growth-friendly environment.

Read more...

--Wall Street Journal

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