The Canadian Auto Workers union (CAW) says EMD and its parent, Caterpillar Inc., offered a contract that cut wages in half and reduced benefits, as well as ending a current pension plan. “It’s not really a proposal, it’s an ultimatum,” said Tim Carrie, president of the union local that represents the factory’s workers. “This is an attack on middle-class jobs.”
For its part, Caterpillar said wages and benefits for CAW employees are about twice those of workers represented by the UAW at Electro-Motive's LaGrange, Ill., facility. marketplace."
But some CAW officials believe Caterpillar’s stance could force a shutdown of the Canadian factory as a prelude to moving all production to the United States. Such concerns existed prior to the lockout, generated in part by Caterpillar’s opening of a locomotive-production plant in Muncie, Ind., last October.