The Conservative Cave
Current Events => Economics => Topic started by: thundley4 on February 13, 2012, 10:24:25 PM
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Just some interesting tidbits about how unions and high taxes drive out businesses.
Who's to Blame for Caterpillar Snub?
At least one Illinois congressman blames Gov. Pat Quinn for a decision by Caterpillar Inc. to skip Illinois when it relocates a plant from Japan to America, and transport 1,400 jobs with it.
Peoria plays host to the Caterpillar headquarters and was among a handful of candidates for the relocated plant.
Officials from the company sent an email to Peoria politicians and cited an increasingly hostile business climate in Illinois as a factor in their decision. They chose Cary, North Carolina.
Rep. Randy Hultgren (R-IL) said it's Quinn's fault because he allowed a climate unfriendly to businesses to develop in the state. To wit, the governor has had to make special concessions to Caterpillar and other Illinois businesses like Chicago Mercantile Exchange and Sears to keep them in the state after the legislature passed an onerous tax increase in 2011.
Source: http://www.nbcchicago.com/blogs/ward-room/Whos-to-Blame-for-Caterpillar-Snub-138971714.html#ixzz1mKIHSu00
Quinn: Caterpillar decision about port access
AP article (http://www.canadianbusiness.com/article/70305--quinn-caterpillar-decision-about-port-access)
Caterpillar Closes Canadian Plant to Take Advantage of Cheaper Workers--in the U.S.
Caterpillar is moving to newly "Right-To-Work" Indiana, offering rock-bottom wages and searching for anti-union managers. Is the US the new source for cheap labor?
Caterpillar announced Friday it would close its London, Ontario, locomotive plant after 465 workers there refused to grant concessions that would cut their wages in half.
Workers had been locked out since January 1, and Caterpillar did not try to use scabs.
The closure was expected by the Canadian Auto Workers, as Caterpillar has been blatant in its intent to whipsaw the well-paid workers in London against low-paid workers in a non-union plant it recently purchased in Muncie, Indiana.
http://www.alternet.org/economy/154110/caterpillar_closes_canadian_plant_to_take_advantage_of_cheaper_workers--in_the_u.s._
Caterpillar CEO: How to grow jobs in Illinois
*snip*
Despite the fact that we have announced plans for dozens of new factories in the last few years and that our workforce in the United States has increased by more than 14,500 people in the last 10 years, we haven’t opened a new factory in Illinois in decades. Our workforce in Illinois today is at the same level it was 10 years ago. In short, when Caterpillar and most other companies look to locate a brand new factory in the United States, Illinois is not in the running for such projects.
*snip*
The state passed some changes to workers’ compensation last spring, but it wasn’t enough. Illinois will still be among the most expensive states in the nation for workers’ compensation insurance.
http://www.galesburg.com/newsnow/x1676718733/Caterpillar-spokesman-How-to-grow-jobs-in-Illinois?zc_p=1
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Don't ya just love it when a plan comes together? :sarcasm:
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Just some interesting tidbits about how unions and high taxes drive out businesses.
It's not so simple. The Canadian fiasco, in my opinion, wasn't about unionism. It was widely written that the Canadian division was purchased for some patents and technology, not for the facility it's self. Caterpillar proceeded to demand an approximately 50% reduction in pay for skilled labor. They even had job fairs trying to attract a replacement work force at the newer rates and weren't able to attract skilled labor for the high school wages they proposed. They than used that as a pretext to shutter (and relocate) it, which is what was widely considered to be one of their initial goals to begin with.
As for Illinois, they've had a vicious battle going with the state for awhile now, with a lot of political stabbing going back and forth. Hence we see the continuation of that with how much the president of Caterpillar goes out of his way to snub the state, when ever given the chance.
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It's not so simple. The Canadian fiasco, in my opinion, wasn't about unionism. It was widely written that the Canadian division was purchased for some patents and technology, not for the facility it's self. Caterpillar proceeded to demand an approximately 50% reduction in pay for skilled labor. They even had job fairs trying to attract a replacement work force at the newer rates and weren't able to attract skilled labor for the high school wages they proposed. They than used that as a pretext to shutter (and relocate) it, which is what was widely considered to be one of their initial goals to begin with.
As for Illinois, they've had a vicious battle going with the state for awhile now, with a lot of political stabbing going back and forth. Hence we see the continuation of that with how much the president of Caterpillar goes out of his way to snub the state, when ever given the chance.
A 67% increase in taxes is not a good way to retain or entice businesses to your state, though. I don't know much about the Canadian deal, but are the workers in Indiana really going to take that much less than the Canadians would have taken?
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A 67% increase in taxes is not a good way to retain or entice businesses to your state, though. I don't know much about the Canadian deal, but are the workers in Indiana really going to take that much less than the Canadians would have taken?
I wholeheartedly agree that a 67% increase in taxes isn't good, Caterpillar was given some significant special treatment by the state to offset it though. There really has been a long term feud between the Governor and the President of Caterpillar though, quite a bit of childish and shady bickering back and forth. I think it started when Caterpillar was given a sweetheart deal, and than refused to live up to its end of the bargain. I seem to recall Caterpillar being caught trying to play the state in a letter as well.
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Good Lord, didn't these UAW assholes realize how close they came to putting themselves all out of a job permanently with the 1990's strike against Caterpillar?
http://articles.latimes.com/1998/feb/14/business/fi-18937
Didn't they notice after a five year strike that construction sites nationwide were sporting copious amounts of imported construction vehicles with nary a Caterpillar machine in sight anywhere?
The Asian competition most certainly noticed.
More power to Cat! I hope they do very well in their new digs away from the parasites in Illinois.
Screw the unions!
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owebuma is doing a very nice job at doing just that. Trouble is, they will fund owebuma just as much, and continue to vote for him and his minions.
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Update: Caterpillar is going to GA. NC taxes are too high
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Update: Caterpillar is going to GA. NC taxes are too high
Yep, Athens, home of the Mutts.
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Update: Caterpillar is going to GA. NC taxes are too high
High taxes kill business.
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Update: Caterpillar is going to GA. NC taxes are too high
Well that one plant is going to Georgia. Another plant is being built as we speak in Winston-Salem or open now. Also it seems that CAT is looking at NC to relocate there headquarters.
Though the plant from Japan is not coming and going to Georgia. What is the overwhelming theme here.........Right to WORK states.
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Yep, Athens, home of the Mutts.
And if I had a son sir
I'll tell ya what he'd do
He would yell "To hell with Georgia"
Just like his Daddy used to do
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What is the overwhelming theme here.........Right to WORK states.
term needs to be changed to "Able to Work" states
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term needs to be changed to "Able to Work" states
Willing to work.
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Willing to work.
Have workboots
Can find workboots
Will wear workboots
Will work.
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CAT has had major problems in Illinois and Iowa since the 90's....where one plant was in Bettendorf, IA there is now a gambling boat.
They have also had more and more competition over the years. Most names on tractors I can no longer pronounce. :rotf:
The UAW tried playing hard ball for many years with CAT and we can see where it got them....the wages of the workers will rise to a competivie level over time, they just wont have to worry about union dues and union thugs.