Thursday, September 24, 2015

Familiar, sad refrain - - more job cuts at Caterpillar

Caterpillar, headquartered in South Milwaukee and with a manufacturing plant obtained in the Bucyrus takeover in 2010, is planning layoffs in its operations. 


The state isn't so open for business after all, as the some of the local production workers or the white-collar staff could get the axe.


Remember when that takeover went down?

Bucyrus shareholders did well - - Caterpillar paid a 32% premium for the stock, the outgoing Bucyrus boss was in line for a total compensation payout approaching an estimated $50 million, and Caterpillar Chief Executive Douglas Oberhelman was upbeat about the merged firm he was to lead:
The deal is the biggest splash yet by Mr. Oberhelman, who became chief on July 1. “It is a strong statement about our belief in the bright future of the mining industry,” he said.
And while Caterpillar made some promises to customers and products...
We acquired Bucyrus to better serve our customers 
The transaction combines two widely recognized and respected brands — both with deep expertise in mining and strong customer relationships — to provide mining companies with a highly complementary product line that better meets their increasingly complex requirements. 
We have no plans to eliminate Bucyrus products. 
One of the key drivers of the acquisition was a Caterpillar goal to offer more products to the mining industry. This acquisition gives Caterpillar the broadest line of surface and underground mining equipment in the world. Because there is very little overlap in their product lines, plans are to keep all Bucyrus products as part of the Cat equipment lineup. Caterpillar Global Mining is especially excited by the opportunity to begin serving underground coal customers.

Today's news again shows that takeovers and mergers can leave workers with nothing:
Caterpillar plans up to 5,000 job cuts as key markets slow
A storyline that fits with this 2013 history, and the handwriting-on the-wall that year:
Caterpillar cuts more jobs in Milwaukee area
And this even earlier this year, setting and advancing a trend: 

Caterpillar cuts Milwaukee workforce. Again.
When was the last time you heard about a corporate merger that actually led to new jobs and worker security? 

Make sure you read Dom Noth's informed reporting, here, and thanks to Dom for sending a link to a photo archive about Bucyrus labor and production. A sample:

No comments: