Indiana’s sharp rise in union members is due to its robust economic growth and increase in manufacturing jobs, while Illinois’ economy continues to lose factories and sees little growth in union members.
In February 2012, Caterpillar’s then-CEO Doug Oberhelman outlined needed reforms to save Illinois manufacturing jobs. State lawmakers have failed to act, and the Land of Lincoln is the only state in the region to lose manufacturing jobs since.
In the last decade, Illinois’ economy and the economies of neighboring states have gone in opposite directions, with more people now working in Wisconsin and Indiana combined.
The company’s announcement affects 800 hourly employees, though 1,200 workers will remain in Aurora. In January, Caterpillar announced plans to relocate its global headquarters to Chicago and out of its longtime hub in Peoria.
Chicago’s $1.15 billion projected budget gap is the latest in a decades-long string of structural deficits. Making Chicago’s high taxes worse is not the solution.