A blog focusing on politics in Central Illinois.

Wednesday, June 08, 2005

Caterpillar, screwing retirees since 2004

Then

Workers said the company's earlier proposals to shift health care costs were too steep, especially for retirees on fixed incomes. Caterpillar said costs were about a third of national averages, and that nearly 80 percent of U.S. employees now contribute to their medical coverage.

The two-tiered wage scale would pay new hires and current supplemental employees less than veterans doing the same job, which workers argued would create friction in plants. Caterpillar countered that the wage scale is needed to stay competitive in its global market and is above industry standards.


Now

Caterpillar Inc. on Wednesday announced a two-for-one stock split and increased its quarterly dividend by 22% to 50 cents a share from 41 cents a share on a pre-split basis. On a split-adjusted basis, the per-share increase of 4.5 cents is the largest in the company's 80-year history. The stock-split shares will be distributed on July 13 to shareholders as of June 22 and Caterpillar's previously announced share buyback program goal to reduce outstanding shares to 320 million will be adjusted for the split to reflect an adjusted goal of 640 million shares outstanding by October 2008. The new quarterly dividend rate of 25 cents a share is payable August 19 to shareholders as of July 22.

And when we tell you competive, we mean we have to make more money than we ever have. Thanks guys for all your hard work, so much for our promises we made to ya, but ya know we need money hand over fist.