By JAMES R. HAGERTY
JOLIET, Ill.—At a time when many Americans are willing to work on almost any terms, workers at a Caterpillar Inc. CAT -2.53%factory here are settling in for what could be a very long and costly strike. Their reasons include anger, a slim hope for a better deal and, for some, a feeling that they have enough skills to get jobs elsewhere if need be.
"To me, right now this is a pride thing," said David Downs, who has been at the plant for seven years. "On their part," he added. But members of the International Association of Machinists and Aerospace Workers, known as IAM, also have made resisting Caterpillar a matter of pride, voting overwhelmingly Wednesday morning to reject a slightly revised company offer and to continue their month-old strike. About 81% of the 620 people voting rejected the offer, down from 94% in a late April vote, just before the union went on strike.
About 770 workers are on strike, a union official estimated, adding that about a dozen have crossed the picket line. Caterpillar, the world's largest maker of construction and mining equipment, has cited a similar number of strikers.
Steve Jones, an IAM official, said the union stood ready to resume talks with Caterpillar. Caterpillar rebuffed the suggestion and said the union "has not offered any type of realistic proposal."
Caterpillar faced down strikes by the United Auto Workers in the 1990s and forced that union to make concessions, including sharply lower pay for newer workers. Earlier this year, Caterpillar closed a locomotive plant in London, Ontario, after workers refused to accept a pay cut of about 50%.
The Joliet strikers shrug off such history lessons. "Somebody's got to make a stand," said Brenda Baloy, who has worked there for 17 years. She and others are angry that Caterpillar is asking for concessions even as it projects record profit for 2012 and gave top executives big raises last year.
"We gave concessions when the company was struggling and now that they're doing well they want more concessions," said Terry Rieck, a 40-year veteran at the plant. "It's just time to share the wealth."
Some of the most skilled workers are confident they could get jobs elsewhere. Ryan Daggett, 37, whose father and grandfather worked at the plant, said he makes nearly $27 per hour operating complex machinery. A smaller shop probably would pay him $20, he said. Despite high unemployment, smaller manufacturers have had trouble finding enough experienced operators of some types of sophisticated equipment.
Some of the least experienced people are low-paid temporary workers with little job security and so they feel they don't have much to lose.
Caterpillar has gradually reduced its exposure to unions by opening plants in states with low union support and using more outside contractors. At the end of 2011, about 53% of Caterpillar's 27,000 production workers were covered by union contract agreements. Most of those union members belong to the UAW, which ratified a six-year contract in March 2011 after unusually smooth negotiations.
Caterpillar tweaked its offer to the Joliet workers last week, but the IAM strikers said the changes were minimal. For instance, the company offered a $1,000 bonus for each worker if the union ratified the agreement promptly. That was up from zero in recent weeks but down from the $5,000 signing bonus offered in April. The six-year contract would allow Caterpillar to freeze wages for workers hired before May 2005. For those hired since then, the company could adjust wages based on its assessment of the labor market. Workers would pay more for health insurance, and Caterpillar would have more flexibility to require workers to change shifts.
Workers in the plant, which makes hydraulic pumps for Caterpillar machinery, generally earn around $13 to $28 per hour.
Caterpillar has continued to operate the plant by using white-collar employees. Workers have erected a giant inflatable rat outside the plant gates. One held aloft a sign reading "IAM Stands, Scabs Kneel."
"They're making a hard-line stand," Mr. Rieck, the veteran worker, said of Caterpillar. Which side is more stubborn? "We'll find out," he said.
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