Will he visit the AFSCME picket lines, too?
Friday, Aug 10, 2012 - Posted by Rich Miller
* The governor said he was in solidarity with some striking union members today…
Gov. Pat Quinn visited striking Caterpillar workers on Friday, giving $10,000 toward a food fund but making no promises he could help broker an end to a strike that has entered its fourth month. […]
Quinn said he came to support striking workers and make a donation to the food fund. But he sidestepped questions from one reporters as to whether Caterpillar management was being fair to the workers.
He also did not make any promises to help broker an end to the strike, which began May 1, although many of the strikers urged the governor to get involved in the labor dispute as he walked among them and greeted them personally.
* The Cat workers rejected a second contract offer in May, after the strike began. Some highlights from that proposal…
The six-year contract would freeze wages for workers hired before May 2005 and set pay for those hired afterwards according to “market rates.” The share of health care costs workers would pay would rise from 10 to 20 percent by the end of the contract, and the company’s defined benefit pension plan would be replaced with a worker-contributed 401(k) plan.
Hmm.
Higher health care costs and whacked pension benefits.
Sound at all familiar?
…Adding… When a corporation does it, it’s bad, but when he does it, he’s fulfilling Abe Lincoln’s legacy…
As he opened the Illinois State Fair Friday, Gov. Pat Quinn said tackling the state’s enormous $83 billion pension debt would make the state’s most famous president proud.
“I think that it’s imperative that we do something for history,” Quinn said. “I think Abraham Lincoln would be very proud of us if we use government of the people to solve the problem for the people.”
- state worker - Friday, Aug 10, 12 @ 2:52 pm:
Im not sure this is hypocrisy. Presumably he wants that stuff for all workers. We all do. The difference might be that the corporation has profits to distribute but the state is in the hole for billions. Just sayin’. If we want to raise some taxes, then we can talking about this stuff. Any takers?
- Yellow Dog Democrat - Friday, Aug 10, 12 @ 2:57 pm:
Rich-
The difference I believe is that Caterpillar just announced that they are beating earnings forecasts, north american sales are up 31 percent, and they expect about $10 billion in profits this year.
I expect if Illinois tax revenue, economy and state budget were doing that well, we’d all be talking about baseball instead of pensions.
- Private vs. public - Friday, Aug 10, 12 @ 3:03 pm:
State worker has it right. The difference in this situation is that the state isn’t making a profit, whereas Cat is making RECORD profits.
From the first sentence of Cat’s Q2 Earnings Release “Caterpillar Inc today announced second-quarter profit per share of $2.54, an all-time quarterly record, and a 67-percent increase from second-quarter 2011 profit per share of $1.52.” Compare that to recent releases from the state that have indicated that despite reducing operating expenditures to the lowest levels in 4 years, pension costs are continuing to leave the state in a deficit.
If Cat were struggling like the state is, their labor demands would seem reasonable, as Governor Quinn’s do to most non-state employees. Similarly, if the state were flush with cash, the Governor’s labor demands would look ridiculous, as Cat’s do.
- Private vs. public - Friday, Aug 10, 12 @ 3:04 pm:
Link to Cat’s earnings release: http://www.caterpillar.com/cda/files/3801914/7/Final%20-%20Q2%202012%20Cat%20Inc%20Release%20V2.pdf
- wordslinger - Friday, Aug 10, 12 @ 3:05 pm:
Talk about bad timing for the machinists. CAT is making money hand over fist — one of their best year’s ever — and have inventory stockpiled to boot.
- OneMan - Friday, Aug 10, 12 @ 3:07 pm:
Then again in what some may call Irony, perhaps the 10K he gave from the campaign fund came from a union….
- Crime Fighter - Friday, Aug 10, 12 @ 3:09 pm:
I’m a taker. I think it’s time to end the tax exemption on services. Other states that tax services don’t have the revenue shortfalls that we do.
- House of Pain - Friday, Aug 10, 12 @ 3:11 pm:
Quinn-a walking contradiction
- Anonymous - Friday, Aug 10, 12 @ 3:23 pm:
In life your 1st loss is always your best loss.
- sal-says - Friday, Aug 10, 12 @ 3:25 pm:
One word: disgraceful.
Quinn putting himself in ‘Abe would be proud’ territory.
“…if we use government of the people to solve the problem for the people.” Ahhhh…..but not ALL of the people.
That Quinn: Watta guy.
- Anonymous - Friday, Aug 10, 12 @ 3:26 pm:
Your 1st loss is always your best loss.
- truthteller - Friday, Aug 10, 12 @ 3:33 pm:
Didn’t state revenues exceed expenditures by over $600 million last year? Didn’t COGFA project $500 million more in revenue than as appropriated for the current fiscal year?
- Commonman - Friday, Aug 10, 12 @ 4:14 pm:
You fellas do know that it is the responsibility of business to make profit, right? That is why people invest in business; so they can reap rewards. Noone invests in government. It takes and takes and takes. And then gives away to a few who work for it and many who do nothing for it. And when it is in the hole, it goes to the ones who work for it to make sacrifices. And that is Illinois!
- Wensicia - Friday, Aug 10, 12 @ 4:14 pm:
“I think Abraham Lincoln would be very proud of us if we use government of the people to solve the problem for the people.”
State workers are the people, too.
- Irish - Friday, Aug 10, 12 @ 4:19 pm:
Thanks again Rich for making a valid point and highlighting the hypocrisy.
It is okay for OTHER union people to strike and demand better benefits but not state workers.
The question to all you folks out there that are saying Cat is making profits so it is okay is; Would Cat or any other corporation be making those profits IF they did not get breaks from the state, AND if they did not get breaks from the state would the state be in better shape?
Will all of you be so forgiving if in a year or so Cat came back to the state and demanded a deal such as Sears got because they could no longer make a go of it in Illinois and were looking elswhere? And what would you want our Governor to do then? Give them a break and cut social programs further?
I am not against the workers who are on strike I am just very frustrated that people are so forgiving to ANT other union or working group when they want a little more yet they get out the lynching rope when state employees, who made concessions to try to help, just want what was already promised to them.
- Commonman - Friday, Aug 10, 12 @ 4:39 pm:
Irish asks…”Would Cat or any other corporation be making those profits IF they did not get breaks from the state, AND if they did not get breaks from the state would the state be in better shape?” The state gives breaks because they desire the money and benefits Cat brings to the state. The state would suffer more without Cats business. Cat can go anywhere to make profits.
- state teacher - Saturday, Aug 11, 12 @ 5:54 pm:
i want the governor to understand that a message will be sent by state workers on wednesday august 15. govornors day is the perfect forum for quinn to show his unity with state workers. he should py attention to our message or understand that cat is not the only group who can strike. shutting down the state is an option for afscme employees. we only want what we are owed and a fair deal for our next contract. i for one refuse to be the bad guy after paying my retirement for 30 years of teaching. perhaps quinn has forgotten that he can be held accountable just like blago.
- lcc - Saturday, Aug 11, 12 @ 9:28 pm:
sound like cat is doing like quinn trying to break yhe unions
- Yellow Dog Democrat - Sunday, Aug 12, 12 @ 8:02 pm:
@Irish -
In answer to your question: I’ve been highly critical of the tax deals handed out by the state, and corporate tax expenditures in general.
I think it would be highly appropriate for the state to raise questions about employee wages and benefits - union or otherwise - from any company seeking government subsidies.
At the same time, I think you’ll find that when companies DO seek favorable tax credits or regulatory changes, if their employees are unionized both the union and oftentimes the AFL-CIO are standing shoulder-to-shoulder with them.
Perhaps its time for AFSCME, the IFT, and all the other unions representing public employees to send a clear message through the AFL-CIO to corporations around the state that they will not be so helpful in the future if the business sector isn’t willing to step up to the plate and help resolve the state’s budget problems.
- The Steamer - Sunday, Aug 12, 12 @ 10:13 pm:
Hey Private vs Public… the states “profit” goes up every year..always has. The misuse and poor stewardship is the cause of the States financial problems.
- Say it ain't so! - Monday, Aug 13, 12 @ 8:29 am:
If Top Down Economics really worked, these workers would not be needing to stike. Cat has record profits and instead of hiring more workers to help themselves and the economy improve, they cut jobs and hold back salary and wages of their current workers, so that the corporation and it’s top executives can pull in more money. Of course they are going to put their money behind the Republicans, who have promised them tax breaks so they can have even more profits. Where is the Top Down Economics here? Cat is just a good example of a company that won’t take care of it’s workers and cuts jobs, so the bottom line is better, giving raises to the top executives, but nothing to the workers that actually do the work to produce the product. This is what they do when they have record profits. If we cut their taxes, do we really honestly think they will all of a sudden give their workers better wages and benefits and start hiring more workers? How would that loss of tax revenue boost the economy and not put the nation further in debt?