30 September, 2024The Caterpillar global trade union network met in Paris on 25 September to strengthen global solidarity among workers at the manufacturing giant. As Caterpillar continues to post staggering profits — more than US$ 9 billion in 2023 — workers around the world face stagnant wages, job insecurity and growing anti-union practices.
The meeting brought together union representatives from across the globe to address challenges and chart a course for collective action. With delegates sharing stories of worker struggles in the US, Northern Ireland and Mexico, a sense of urgency was palpable.
Caterpillar’s increasing reliance on outsourcing and its reluctance to engage in genuine social dialogue were common themes throughout the discussions.
Despite a global slowdown in the construction sector, Caterpillar’s financial performance remains robust. However, union representatives stressed that this success has come at a cost to its workforce.
Christina Olivier, IndustriALL Global Union assistant general secretary, said:
“Caterpillar is thriving, yet its workers are being squeezed. The company’s profits must not come at the expense of fair wages and respect for workers' rights.”
A key concern raised during the meeting was the company's continued race to the bottom strategy, where production is relocated to low-wage countries, leaving workers in those regions with limited protection. The Mexican case, in particular, stood out.
In Nuevo Laredo, Mexico, workers at the Caterpillar Tecnología Modificada plant have been on strike for over a year, demanding fair wages and recognition of their union, the Sindicato Nacional Independiente de Trabajadores de las Industrias y de Servicios (SNITIS). The strike follows months of failed negotiations, with workers accusing Caterpillar of union-busting tactics and discriminatory practices.
In a union win, Victor Manuel Vergara, a union leader initially dismissed for organizing, has been reinstated. However, SNITIS and its members continue to push for a collective bargaining agreement that guarantees better wages and safer working conditions.
“SNITIS’ fight is the fight of all Caterpillar workers globally. We stand in full solidarity with our comrades in Mexico and will continue to support them until their rights are fully respected,”
said IndustriALL general secretary Atle Høie.
The network has agreed to send a formal letter to Caterpillar CEO Jim Umpleby, urging him to intervene and ensure that negotiations with SNITIS are taken seriously.
Caterpillar’s continued success in the global marketplace, union representatives argue, must be matched by a commitment to fair labor practices. As one delegate put it:
“Caterpillar cannot continue to exploit workers while reporting record profits. The world is watching.”
The meeting also addressed the need to revitalize the network itself. Since the Covid pandemic, communication between unions has slowed, weakening the effectiveness of collective action. Delegates reaffirmed their commitment to building solidarity across borders and pushing back against Caterpillar’s labour practices. As discussions concluded, the message was clear: Caterpillar workers around the world face similar challenges, and only through collective action can they push for meaningful change.
Said Christina Olivier:
“This is not just about one plant or one country. It’s about setting a standard for how multinational corporations treat their workers. We are stronger together, and Caterpillar must understand that we will not back down.”