Business as Usual

[xoxoxoBruce]

From the Wall Street Journal, how business works.

Caterpillar Inc. says it will close five more factories, including an Oxford, MS, plant, as the heavy equipment maker reacts to slowing demand for construction and mining equipment worldwide by cutting capacity. With Thursday’s announcement, Caterpillar is closing or consolidating 20 facilities. That sounds like a reasonable approach.

The Oxford plant, with 240 employees, earning $15 to $17 and hour, stamping me hose couplings, will continue work into 2017, then shift some production to Caterpillar’s plant in Menominee, Michigan, and some work to outside suppliers.

Over the next 18 months Caterpillar is also closing:
325-employee facility in Newberry, SC, and
75-employee in Ridgeway, SC, shifting work to company plants in Seguin, TX; Lafayette, IN; and Griffin, GA.

70-worker plant in Jacksonville, FL, shifting work to outside suppliers.
110-worker Morganton, NC, shifting work to other company plants and suppliers.

Caterpillar says it has laid off 5,300 workers between last September through March 30.
5300+240+325+75+70+110 = 6120

Caterpillar CEO’s 2015 Pay Package Reached $17.9 Million
Doug Oberhelman, CEO since July 2010, compensation for 2015 rose 4.5% to $17.9 million, but his performance-based pay plunged as the sales and profit fell in the face of weak markets.

20 plants closed
6120 peons pay goes to zero
CEO pay up 4.5% to $17.9 million

Yeah, business as usual.