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.
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.
Peoria-based manufacturing giant Caterpillar announced Dec. 14 it will lay off even more employees – another blow to CAT employees in the state and around the globe. Yet while too many Illinoisans struggle under the state’s faltering economy, AFSCME continues to demand more pay and more benefits for state workers.
Chicago and Illinois have plenty of their own problems on the manufacturing front, with issues such as high property taxes and workers’ compensation costs driving production facilities to other states. But U.S. trade policy regarding sugar isn’t helping matters. For each one sugar growing and harvesting job saved through high U.S. sugar tariffs, nearly three confectionery manufacturing jobs are lost, according to the International Trade Administration.
The American Federation of State, County and Municipal Employees claims to be seeking a “fair contract” on behalf of Illinois state workers. But the power and influence exerted by the state’s largest government-worker union means the bargaining table almost always tilts in AFSCME’s favor. The reality is that AFSCME is the power player in negotiations...
The Land of Lincoln’s unfriendly climate for manufacturers has weakened Illinois cities, discouraged investment and made the state uncompetitive in the region.
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.