And now in London we have 700 brand new $0/hr jobs. How'd that work out?
1) EMD-London was losing money. The CAW and its members knew this.
2) Cat has a facility in Indiana ready to take on the work load with reduced wages and no union. The CAW and its members knew this.
3) Cat has a realistic obligation to its shareholders to make money. If a stand-alone subsidiary is losing money there is no reasonable justification for continuing to operate as-as and lose more money. The CAW and its members knew this.
4) The collective bargaining agreement at EMD was extended for 6 months in the summer. During that time the CAW was supposed to come up with a counter offer that would help EMD-London become profitable again. They did not come up with any counter-offer.
5) EMD gave their offer to the CAW. Likely one that meas this is what it's going to take for us get back into the black. If we can't make money, we're done.
6) Instead of accepting the offer with reduced wages and looking for better employment thereafter, the CAW chose to refuse the offer to show that they can't be bullied around. Well.. they called Cat's bluff and lost.
I work quite near the EMD-London facility and there has been a lot of discussion about it. Everyone I've talked to has basically been in agreement that when the union refused the new deal and got locked out EMD-London would never open again. Everyone knew what would happen if they refused the deal.. and they refused it all the same.
I guess pride is more important than putting food on the table.