Caterpillar won a court battle May 14 against an Illinois law that prohibited companies from hiring strike replacement workers. U.S. District Court Judge Joe McDade said the law, which was approved last year, impacts collective bargaining by shifting the balance of power in favor of labor to the detriment of management. The law goes beyond what Congress intended and is preempted by the National Labor Relations Act, McDade said. Caterpillar is negotiating a new contract with its largest union, the United Auto Workers, which rejected the company’s “final offer” last month. Union members have been working without a contract since April 25.
Caterpillar wins challenge over strike replacement workers
June 7, 2004