Caterpillar Begins Rehiring Workers as Demand Rises

[Statistical]

Caterpillar Inc. said it has started rehiring and expects to return a portion of its laid-off employees to jobs as demand increases in the coming months.

About 550 U.S. employees have returned or will return to work before year-end, including support, management and production employees, the Peoria, Illinois-based company said in a statement today. Caterpillar also began telling about 2,500 U.S. idled workers that they won’t get their jobs back and will be offered a separation package.

“We are pleased that signs of recovery in the global economy allow us to return a selected group of laid off employees to work,” Chief Executive Officer Jim Owens said in the statement. “But it’s important to remember that we are not close to the record-breaking demand we experienced from 2004 through 2008.”

Caterpillar, the world’s largest maker of bulldozers and excavators, cut about 18,700 full-time jobs and about the same amount of temporary workers since December 2008 as demand declined. The company last week posted third-quarter earnings that beat analysts’ estimates and issued a full-year forecast that exceeded the highest prediction.

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http://www.bloomberg.com/apps/news?pid=20601103&sid=aWaNyeYiD82U

A mixed bag but nice to see at least some people going back on the job. Now we just need a thousand companies to do the same thing and then do it 10.

[NNN0LHI]

1. Most these workers will not be used to increase production. Most will be skilled tradesmen

I am sure Caterpillar does the same thing as the auto industry does. When they know production is getting ready to increase they have to get the skilled tradesmen back to get the repairs and preventive maintenance done on the machinery and have it ready for the expected increased production. Usually in about a year.

Ford usually began calling back the skilled tradesmen about 6 months before production spikes to get the equipment ready.

When I was a laid off production worker and I heard the machine repairmen, electricians, and other skilled workers were getting called back it was a great relief for me. Even though it wasn't me getting called back I knew my time was coming soon. Might be six months or another year? But I knew it was coming.

Don

[Statistical]

2. Nice insight. Makes sense.

I think companies like will lead us into recovery.

Cat actually exports stuff and many markets are growing and have demand for industrial equipment. They also make a product where a shody cheap replacement just doesn't cut it. Save 20% using a "knock off" crane and then have it fall under stress and destroy a $200 million building. Yeah hard to explain that to your boss. Even China home of the knock off everything buys genuine cat products.

[NNN0LHI]

4. Last thing the managers wanted was to get a full staff called back and have everything broke down

Having a couple thousand workers standing around due to breakdowns could get a plant manager fired in a hurry. I have seen it happen.

Don

[AllentownJake]

3. This is not good news

It is good news for the 550 who are being called back, but this means that they don't expect to have a need in the future for 2500.

What this says to me is Caterpillar is projecting an increase in demand, but not the levels it previously had which means those 2500 jobs are not coming back anytime in a reasonable time frame horizon.

Translation, the jobless recovery continues.

[NNN0LHI]

5. Have you had a lot of hands on experience in heavy industry?

Where do you draw your conclusions from?

Don

[AllentownJake]

9. I have common sense

If you tell 2500 people we are going to give you a severance package and you than re-hire 550 people, than you aren't really anticipating hiring those 2500 people back. Otherwise you wouldn't pay them to sever the employment. A situation may arise where you end up re-hiring but a severance is generally meant to be a severance.

[mackdaddy]

10. Pretty much what this article said explicitly...

CAT Drops 2,500 Laid-Off Workers Manufacturing.Net - October 26, 2009
PEORIA, Ill. (AP) -- Caterpillar Inc. said Monday about 2,500 laid-off employees will be permanently cut from the company and 550 others will be brought back to work by the end of next year.

The workers are among more than 22,000 laid off earlier this year as Caterpillar dramatically scaled back production due to weaker demand amid the global economic downturn. The Peoria, Ill.-based company has cut 16 percent of its work force, which now stands at just above 94,000.

But last week Caterpillar, the world's largest maker of mining and construction equipment, said it was seeing "encouraging signs" that a recovery may be under way, even as it reported a 53 percent decline in third-quarter earnings.

On Monday, Caterpillar said it had started notifying the 2,500 employees of the permanent cuts, but would not provide a breakdown of their locations. It plans to offer them severance packages.

Meanwhile, the company said about 550 other laid-off workers have returned to work or will return before the end of 2010.

"We are pleased that signs of recovery in the global economy allow us to return a selected group of laid off employees to work," Chairman and CEO Jim Owens said in a statement. "But it's important to remember that we are not close to the record-breaking demand we experienced from 2004 through 2008."

http://www.manufacturing.net/article.aspx?id=224322

[AllentownJake]

11. I know but I'm a doom and gloomer

because I'm not throwing a parade about the 550 jobs that will be coming back instead of focusing at the fact that the company has decided to permantly lay off 2500 workers.

So 16% of the jobs they intially cut are going to be brought back in 2010. What a great fucking recovery! :sarcasm:

[Sinti]

6. after 28 years with Cat

my SO's step-father was laid off in March in what I would consider a particularly ugly way. He'd done the whole "bootstraps" thing, worked from the bottom into a managerial job. As of September he finally got another job at about 50% of what he was making, and now traveling the whole Pacific Northwest. And he's one of the lucky ones. Apparently there will now be a "few" more lucky ones.

[NNN0LHI]

7. I seen the same thing happen to guys in management where I worked too

These guys would kiss up to the bosses until they got a managerial position. They would stab their best friends in the back on the way up too. Then bamm, at the first hint of a downturn these were the first guys to get the shaft. Their stock was worthless, their retirement pay was cut and they even took away their medical insurance from them. Here they are out of a job, no health insurance, their retirement pay cut, and no friends.

I bet your SO's step-father regrets all that ass kissing he had to do to get into management now.

The smart ones stayed in the union where I worked.

Don

[Sinti]

8. Idaho = no union

He's actually a really quiet stand-up guy. He's not the kind who would have done "enough" ass-kissing on the way up, hence why he was the first managerial local job cut. His interest actually was in the younger guys coming up and taking care of them, and it was only them really who were sorry he was leaving. And no, no retirement, he's only 51. He was basically told on Monday he wasn't going to be cut, and on Wednesday to pack his desk.