Home > Cat to cut jobs, funding puts more at risk

Cat to cut jobs, funding puts more at risk

Editorial
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Caterpillar is set to axe more jobs, this time its while collar workers based in the US are reportedly in the firing line.

The company said it has notified workers this week, sending out letters to those who will be affected.

According to the Herald Review many of the letters have been sent to Cat’s mining truck plant in Decatur, as well as a number of other factories in the US.

Caterpillar wouldn't comment on exact numbers but said employees in "support and management" would be impacted.

The company said workers on the chopping black will have the opportunity to apply for vacant roles elsewhere in the organisation.

“If they are not able to find another position, then they may end up leaving the company,” company spokesperson Jim Dugan said.

The cuts come after a raft of redundancies across Caterpillar’s global operations as it attempts to curb costs.

Cat’s second-quarter earnings took a 43 per cent hit, forcing the company to cut its revenue and profit outlook for the year.

Globally Cat’s order books have taken a hit with equipment sales falling.

The manufacturer is now urging the US Export-Import bank to approve a $US650 million long-term loan which would pay for trucks, bulldozers and other Cat equipment for the Roy Hill iron ore project in Western Australia.

But lobbyists from Minnesota and Michigan are calling the US government institution to block the loan saying the Roy Hill operation will flood global markets with iron ore, increasing competition for US mines, JS Online reports.

Almost $US500 million of the loan would be used to purchase the US made equipment with the remainder allocated for installation at the Roy Hill site.

While the mine will go ahead with or without Cat’s loan, the manufacturer said a rejection could hamper its ability to win the equipment order as the Gina Rinehart owned operation could potentially secure financing from Asian countries and subsequently purchase equipment from those countries.

 

The majority of Cat’s equipment for the new Pilbara mine would be made in Illinois.

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