28 September, 2011Caterpillar, the industrial equipment giant, increased its flexible workforce by 50% between June 2010 and June 2011
USA: In a recent release, Caterpillar reported that demand growth and its investments through the end of June 2011 had resulted in more than 27,000 additional people in its global workforce since the beginning of 2010. About a third were in the United States and two-thirds outside the USA.
However a large part of the new jobs created are temporary, part-time and agency work. Caterpillar is shifting from secure to insecure employment, forcing workers to bear the risk of any downturn in business. Between June 2010 and June 2011, the number of flexible workers doubled, reaching 24,064. As a result, the proportion of flexible workers in Caterpillar's global workforce went up from 14% in June 2010 to 18% a year later. While temporary work jumped by half, full-time employment grew by only 16%. Most of the increase in the number of flexible workers took place in the USA.
During that period, Caterpillar posted a 37 per cent increase in total sales and revenues. Profit per share was up 39% from the second quarter of 2010.
The global expansion of precarious work is a major preoccupation for workers and trade unions. Not only is it driving down wages and impacting on workers' access to social protection. It is also weakening the social fabric and democracy, and the institutions that are necessary to sustain it. "While we are encouraged that Caterpillar has continued to be successful over the past year, and that success has resulted in additional hiring, we have a growing concern about the increasing percentage of precarious positions that Caterpillar has added" said Dennis Williams, UAW Secretary-Treasurer and Chairperson of the IMF Caterpillar trade union network. "Precarious work does not contribute to the creation of good, secure jobs and undermines the economic stability needed to boost demand in the world economy".
The IMF together with other global union federations has made the fight against precarious work in all its forms one of its top priorities. They will continue to mobilize against the race to the bottom and push for economic and social policies that put permanent jobs first and restrict temporary and contract work to cases of genuine need.
However a large part of the new jobs created are temporary, part-time and agency work. Caterpillar is shifting from secure to insecure employment, forcing workers to bear the risk of any downturn in business. Between June 2010 and June 2011, the number of flexible workers doubled, reaching 24,064. As a result, the proportion of flexible workers in Caterpillar's global workforce went up from 14% in June 2010 to 18% a year later. While temporary work jumped by half, full-time employment grew by only 16%. Most of the increase in the number of flexible workers took place in the USA.
During that period, Caterpillar posted a 37 per cent increase in total sales and revenues. Profit per share was up 39% from the second quarter of 2010.
The global expansion of precarious work is a major preoccupation for workers and trade unions. Not only is it driving down wages and impacting on workers' access to social protection. It is also weakening the social fabric and democracy, and the institutions that are necessary to sustain it. "While we are encouraged that Caterpillar has continued to be successful over the past year, and that success has resulted in additional hiring, we have a growing concern about the increasing percentage of precarious positions that Caterpillar has added" said Dennis Williams, UAW Secretary-Treasurer and Chairperson of the IMF Caterpillar trade union network. "Precarious work does not contribute to the creation of good, secure jobs and undermines the economic stability needed to boost demand in the world economy".
The IMF together with other global union federations has made the fight against precarious work in all its forms one of its top priorities. They will continue to mobilize against the race to the bottom and push for economic and social policies that put permanent jobs first and restrict temporary and contract work to cases of genuine need.