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“We Can Never Make Enough Money” CEO Tells Ever-Poorer Workers

| Written by David Morris | No Comments | Updated on Aug 15, 2013 The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/we-money-ceo-ever-poorer-workers/

200px-Caterpillar_logo.svg“Caterpillar has pioneered a two-tier wage system in which workers hired after a certain date are consigned to a significantly lower wage scale than others and it recently pressed its longer-term employees into accepting a six year wage freeze.  Many Caterpillar workers ask why the company insisted on a pay freezer when it reported repeated record profits-$5.7 billion last year, amounting to $45,000 per Caterpillar employee.  Caterpillar’s chief executive, Douglas Oberhelman (whose compensation has increased more than 80 percent over the last two years) says the freeze was vital to keep wages competitive with rival companies.  “I always try to communicate to our people that we can never make enough money”,  he recently told Bloomberg BusinessWeek.  “We can never make enough profit.”

Steven Greenhouse, “Fighting Back Against Wretched Wages.” New York Times. July 28, 2013

About David Morris

David Morris is co-founder of the Institute for Local Self-Reliance and directs its initiative on The Public Good. He is the author of the New City States, Seeing the Light, and three other non-fiction books. His essays on public policy are regularly published by On the Commons, Alternet, Common Dreams and the Huffington Post.

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