Cat Extends Labor Contract for Now

Caterpillar Inc. has extended its contract from 1998 to its workers at its facilities in Illinois, Pennsylvania, Colorado and Tennessee, at least until a new agreement is reached with the United Auto Workers (UAW), according to a report by MSNBC.com.

Caterpillar’s “last, best, and final offer,” which was rejected by union members on August 15, sought to cap wages for new hires to just over $14 an hour, reported The Wall Street Journal. The union cited insufficient healthcare concessions for rejecting it.

See Caterpillar-Union Standoff Continues

The union backed down on calling a strike, however, in an effort to resume negotiations.

Talks are expected to resume again, although no date has been set.