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Caterpillar to Hire Workers if Stimulus Bill is Passed
By JLP | February 11, 2009
Saw this this morning: Obama: Caterpillar Will Rehire if Stimulus Passes.
The article doesn’t say just how many Caterpillar employees will be hired. The company announced last month that they are going to lay off as many as 22,000 employees.
What are those hired workers going to do? Build machinery. Who’s going to buy the machinery? Call me crazy but don’t we need demand to increase BEFORE companies hire back workers? Isn’t that how it works or did I miss something?
I think that’s the problem we’re seeing with the banks. They have money to lend but who are they going to lend to?
Topics: Credit Crisis | 10 Comments »
February 11th, 2009 at 1:12 pm
I think Caterpillar is anticipating an increase in sales due to the amount of shovel ready projects the bill would supposedly create.
Whether they are correct or not I do not know. But it is their industry, I am sure they know a little more than I do.
February 11th, 2009 at 1:46 pm
Sounds like a smart PR move for Catepillar.
Of the 22,000 they laid off, most positions will be eliminated altogether, while a small few will be replaced with lower wage workers.
And Catepillar gets to look like heroes for it, and show that they deserve a bailout. A very shrewd move.
February 11th, 2009 at 3:51 pm
@Kevin,
“I think Caterpillar is anticipating an increase in sales due to the amount of shovel ready projects the bill would supposedly create.”
This is absolutely correct.
February 12th, 2009 at 7:56 am
Out of all the major companies in my area, this one is the one where I respect the employees the LEAST.
For years, decades, these employees have been screwing their company by seeing how few hours they can work and get paid for a full day. Then bragging about how they are getting the big bad company. And boy does this company get bashed when the lay-offs happen, and they do frequently.
If I had power there, all hours would be made accountable and any non-productives would lose their jobs. They work for one of the best companies in America and do not understand how lucky they are. Caterpillar could be more profitable by cutting the losers.
February 13th, 2009 at 5:19 am
Interesting to read Dedicated’s comment. I know very little about Caterpillar as a company, but the thought leads me to wonder about their organization. Even if they do what they say with regard to the stimulus, they can’t outrun the iron-clad insurance that crappy business practices always come home to roost. It’s tough enough to stay afloat when you are doing everything right!
Jerry
February 14th, 2009 at 9:47 am
I have worked at Caterpillar for the past 11 years and I have never seen the type of employee that Dedicated refers to. On the contrary I find that the people working at Caterpillar to be extremely dedicated to the company and to providing quality products and services for our customers. I worked at a couple of other Fortune 500 companies prior to joining Caterpillar and I find the workforce at Caterpillar to be harder working and more dedicated. I think Caterpillar is a buttoned down hard working conservative company and I am proud to be an employee.
To David’s comment, Caterpillar is not getting a bailout, rather Caterpillar expects to benefit from demand created by the stimulus package.
February 15th, 2009 at 5:12 am
Caterpiller is doing this for one reason and one reason only, and it has nothing to do with shovel ready projects.
Look up the Columbia Free Trade Agreement.
Caterpillar has pushed harder for this agreement than any other company. Obama is against it. Caterpillar scratches Obama’s back. Obama lessons his objections to the bill.
Quid pro quo
February 15th, 2009 at 1:10 pm
Actually, The CEO (or one of the higher ups) corrected their position and Obama’s claims. In fact, they said MORE LAYOFFS will happen before they rehire.
The demand is there because every state and city now will have access to all these “shovel-ready” projects. No way can you build dog parks, tennis courts, and water slides with used equipment!
February 15th, 2009 at 1:15 pm
http://blogs.abcnews.com/politicalpunch/2009/02/doh-caterpillar.html
posting the link to the CEO commment.
November 4th, 2010 at 1:59 am
kids love water slides, they go crazy about it -