Tag Archives: Caterpillar

Are Cat layoffs unethical?

New York Times columnist Randy Cohen thinks so.

Although the law limits the duties employers have to employees, ethics sets a different standard. Caterpillar’s workers have existed for years — sometimes generations — in profound dependence on the company. (No work, no food.) In accepting and profiting from this relationship, Caterpillar (i.e., its stockholders) incurs moral obligations to those workers. In hard times, it may not simply say: find another job. There are no other jobs, or surely not enough of them.

Mass layoffs relegate people to the status of disposable objects. A company can mothball its welding robots…. But people are not machines. Many ethical systems mandate that you do not treat a person like a thing. You must regard other people as full human beings with the same moral rights as you. And that must include the right to make a living…..

Before adopting the ethics of the overcrowded lifeboat, before tossing thousands of non-millionaires over the side, gentler — and more equitable — methods must be tried. Everyone’s hours might be reduced, diffusing the pain. Dividends to stockholders can be eliminated. Pay cuts can be instituted company-wide, with the deepest reserved for the highest paid (that is, those most able to endure them). To its credit, Caterpillar has done some of this, trimming some executive pay by up to 50 percent, less for other management and support staff, and offering buyouts to some employees.

What happened to Peoria’s stimulus package? Also, will Ardis be drinking the Kool-Aid this time?

Well, it certainly is heartwarming to hear that $3 million in additional donations have rolled in for the proposed downtown museum, but it got me wondering… remember all the talk about this project putting people to work during the recession? Who was it that said that? Oh, yeah, Michael Bryant in InterBusiness Issues:

The message to “Build the Block” as our own stimulus package should be viewed very positively. We would be taking control of our destiny and using our talents and resources to help each other, not waiting for a helping hand. While Peoria may get some monies from President Obama’s economic stimulus package, it would be a mistake for us to wait and see what monies we may get while we have our own outstanding stimulus package right in front of us, literally “shovel-ready.”

Except that they’re not going to start shoveling until at least next year. But according to a new report by Bradley professors Scott and Lewer (you remember them), “the recession will end sometime during the second half of this year.”

So much for helping us stimulate the economy or helping our residents through tough times. Sounds like the economy is correcting itself just fine without turning a spade of dirt for the proposed museum. Who’da thunk? Why, I bet once the recession is over, there would even be a market for the land that’s been held hostage by the museum for the past 11 years.

It’s not too late to correct past mistakes. The current redevelopment agreement for the old Sears block is set to expire at the end of June and must be renegotiated. Now would be the time for the city to require a larger portion of the block be opened up to private, mixed-use development. That would allow the museum to still locate on the block, but in a different form, and it would allow a larger portion of the land to produce property and sales tax income for the city — something we desperately need.

It would not be unprecedented, you know. After voters overwhelmingly supported the library referendum, the city decided to scale back their plans, issuing only $28 million for expansion/updating instead of the $35 million voters approved. I believe the phrase at that time was that the mayor wasn’t “drinking the Kool-Aid on the 72%” of voters who approved the referendum. In fact, Ardis said, taking into account the low voter turnout, that really meant that only 15% of all registered voters voted in favor, and the council has a responsibility to look at the bigger picture and represent all residents whether they voted or not. Well, guess what percentage of registered voters voted in favor of the museum? 12.29% (15,327 of 124,730). So, it only stands to reason that the city would take the same cost-saving measures with this project that they did with the library project, right? After all, times are even more dire now than when the library referendum passed; now we’re staring in the face of a $10 million deficit. Will the mayor be representing all residents whether they voted or not this time?

Of course, the city won’t actually do what I’m suggesting. They’ll pass up (for the fifth time now on this project alone) an opportunity to save money for taxpayers and increase revenues to the city, and instead look for more regressive ways to plug the budget deficit, like cutting public works and public safety, and raising garbage fees.

Remember the good old days when we only worried about Cat leaving Peoria?

Now we have to worry about Caterpillar leaving the country, evidently. Check out Congressman Aaron Schock’s interview on Neil Cavuto’s show:

Or, if you don’t want to watch the whole thing, here are the comments that concern me:

SCHOCK: What this bill will do is only speed up foreign competitors buying U.S. corporations. If the President likes Fiat owning Chrysler, and so many of these other foreign competitors gobbling up their U.S. competition because it makes more sense for them to be foreign companies. For the sake of Caterpillar, they only sell 30% of their goods here in our country. If they’re going to be double-taxed on the other 70%, why fly the American flag? […]

CAVUTO: Do you think Caterpillar’s going to bolt?

SCHOCK: I hope that companies like Caterpillar and their brothers and sisters like them around the country will help educate their members of Congress, will help educate their shareholders, and more importantly their employees of the devastating effect of the President’s tax policy, and that members of Congress will hear their phones ring, and ultimately we can kill it.

In other words, Cat should warn everyone that if the President’s tax policy passes, then Cat may leave the U.S. and become a foreign company. Personally, I’m not worried. Peorians ensured that Cat has “drive[n] deep stakes in this community” by passing that museum tax. Cat wouldn’t leave now that we’ve proven our love for them.

Cat talking points on museum

In the post office box of the Citizens for Responsible Spending, we anonymously received this memo purportedly from Caterpillar, dated April 9, 2009:

Build the Block: Peoria Riverfront Museum and Caterpillar Visitor Center Leader Talking Points (Peoria Area)

Caterpillar is pleased about the vote to move forward with Build the Block. We made a commitment in 2002 to support a new regional museum and we will stay true to this commitment. Caterpillar’s funding of this project will be in the near future, but will not occur in 2009.

  • The budgeted cost of the Visitor Center is $41 million. Planning for this project will be modified to reflect our current financial circumstance.
  • The Caterpillar Foundation has pledged $13.5 million to the museum. We have made the decision to temporarily suspend outright cash payments, however, the Foundation will continue to match payments to the museum project from employees and retirees.

The Visitor Center will benefit Caterpillar in many ways:

  • Enhance the overall customer experience when Caterpillar dealers bring customers to Peoria to visit the company.
  • Provide a complete perspective of our commitment to customer success, regardless of where they are working around the world.
  • Exhibits will focus on the value of our equipment, engines and services and the long-term relationships which offer customers a superior value in providing solutions to their business challenges.

Hmmm. So much for stimulating the economy while so many people are facing hard times. Evidently the new plan is to wait for better economic times to build.

Cat encourages remaining employees to vote for museum tax

A source who wishes to remain anonymous forwarded me this e-mail that was sent to Caterpillar employees today:

Dear Team Caterpillar:

In 2002 my predecessor, Chairman Glen Barton, committed Caterpillar’s support to a new regional museum. Since then the company has supported this project to revitalize the downtown Peoria community. Our involvement has grown from a relatively simple presence in the new museum to the current concept — a separate facility housing a corporate visitor center, called the Caterpillar Experience.

This new riverfront development along with the proposed renovation of the Hotel Pere Marquette and the recent expansion of the Civic Center, should transform the landscape of downtown Peoria. The Museum project specifically will offer tremendous educational and entertainment opportunities to residents throughout Central Illinois.

Peoria County voters now have an opportunity to support the Museum project through a countywide referendum on April 7. The proposed 0.25 percent county sales tax increase will provide critical public funding for the new Museum. As federal and state funding sources have disappeared, this local funding initiative has become the last opportunity for moving this project forward.

If you live in Peoria County and can vote on this referendum, I encourage your support. Without a doubt, this project will make Peoria a better place to live, will make downtown Peoria a better place to work and will help us attract the best and brightest employees for the future.

Please remember to vote on April 7. You’ll find the issue as the last item on the ballot which references “public facilities sales tax.” If you’re going to be out of town on election day, you can take advantage of early voting between March 16 and April 2.

Thank you for your support. This is an important opportunity for the members of Team Caterpillar to make a difference in Peoria.

Sincerely,
James W. Owens

There’s nothing wrong with Cat encouraging its employees to vote a certain way, of course. I post this merely to show what Cat’s thinking is on the issue. Several things stood out to me:

  • “…educational and entertainment opportunities…” — Meanwhile, District 150 can’t make payroll, and county school districts need to make facilities improvements. And as for entertainment — it’s not enough that we just spent $95 million expanding the Civic Center and adding an attached hotel? How many more millions can the public afford for “entertainment”?
  • “As federal and state funding sources have disappeared…” — I thought we just heard yesterday at the Build the Block news conference that these funding sources have reappeared. Aren’t they hoping to get $14 million in stimulus money now? Didn’t Illinois Secretary of Transportation Hannig say that the state is “committed to this project” financially? Sounds like the tap has been turned back on.
  • “…this local funding initiative has become the last opportunity for moving this project forward…” — I thought the New Market Tax Credits were the last opportunity to move the project forward. And before that, I thought extending the redevelopment agreement was the last opportunity to move the project forward. How many “last opportunities” are there?
  • “…this project will make Peoria a better place to live…” — For whom? How many Cat executives live in Peoria? How many live across the river? How many live on the south side?
  • “…will make downtown Peoria a better place to work and will help us attract the best and brightest employees for the future.” — And where are those future employees going to live? The east bluff? South Peoria? Averyville? If not, why not? I thought this museum was supposed to make Peoria a better place to live. Why wouldn’t they want to live here? What’s wrong with these parts of town that a new museum doesn’t cure?
  • “This is an important opportunity for the members of Team Caterpillar to make a difference in Peoria.” — The members of Team Caterpillar who are left after all the layoffs, that is.

Sears block may remain parking lot until 2010

There are a couple of items regarding the Sears block on the City Council’s agenda for Tuesday night, Dec. 9.

The first one is a six-month deadline extension of the Museum Block Redevelopment Agreement. The original redevelopment agreement was signed way back in 2004, and the deadline for the agreement was December 2006. Each year since then, the deadlines have been pushed back as the council waited for the museum group to get the funds they needed; there was always one more avenue that was sure to bring in the money. Each attempt to secure the needed funding has failed.

The latest plan is to ask Peorians in the midst of a recession to voluntarily raise sales taxes on themselves via referendum to pay for the construction and ongoing maintenance of the proposed museum. The county board will be discussing this ballot question soon, even as Caterpillar contractors are being laid off, and other local bodies (such as the school board) are realizing dramatically lower tax revenues due to the current economic climate. Could the museum folks and our elected officials from the city and county be any more out of touch? Why are they continuing to pursue this?

No doubt there will be a fourth amendment on the agenda for June 2009 after this latest plan fails and all the players look for a way to get that tax money anyway by circumventing the voters (anyone want to take bets that they’ll be asking the Public Building Commission for the money?). That seems to be the M. O. of our “public servants” these days.

Even if the museum project folds up after June, we’re still going to have a big parking lot on the Sears block because the council will also be approving an agreement to extend Caterpillar’s lease of the block for use as a parking lot until December 31, 2009. Why not extend it only until June 30, just like the redevelopment agreement? Under this parking plan, the city would potentially be unable to pursue other development projects for this block until 2010.

Both of these items are on the consent agenda, which means there will be no discussion on them unless a council member asks for them to be voted on separately.

Museum showcases plans for “The Street”

From a press release:

Peoria Riverfront Museum’s “The Street” to Innovatively Capture the Region’s Colorful History

Peoria – The Peoria area’s history will surprise, educate and entertain you. Peoria Riverfront Museum collaborators proved that point today as they revealed details of The Street, a major, ever-changing gallery designed to bring to life the Peoria area’s long and colorful history—from its Native American roots through the initial French settlements to its place as the All-American bellwether of U.S. taste and beyond.

Collaborators playing a key role in planning The Street, including the Peoria Historical Society (PHS), Peoria Regional Museum Society (PRMS) and African American Hall of Fame Museum (AAHFM), spoke to supporters gathered at the Hotel Pere Marquette in downtown Peoria, a few blocks away from the seven-acre site of the proposed development.

State Sen. David Koehler, a long-time proponent of the museum block, said, “I’m excited to see the groundswell of support around The Block. I know this project will bring great educational, cultural, entertainment and economic opportunities to our region.” Koehler added he’s “looking forward to visiting The Street to explore more about the Peoria area’s early years and all the people and companies who have helped to make it what it is today.”

“We’ve talked previously about the features of the Riverfront Museum, including the IMAX Theatre and the planetarium,” said Museum Collaboration Group co-Chairperson Brad McMillan. “Today, we focus on the exhibit galleries planned for the Washington Wing of the museum, particularly The Street historical galleries showcasing the region’s history and the Oral History Center, where visitors of all ages can tell their stories for generations to come.”

The collaborators unveiled specific plans for The Street, including The Square, a nearly life-size streetscape integrating real objects from the region’s past, oversize graphics, text and interactive opportunities. The Square will feature an interpretive timeline of the area’s past, as well as fascinating stories unique to Peoria—some legendary, some little known. Anchoring The Square will be a massive video projection and large-scale artifacts supporting the current theme.

PHS Board President Marilyn Leyland said The Street will be a rotating exhibit with themed portions continually changing, starting with “Pride of Peoria: Innovation and Entrepreneurship.” Focusing on Peoria as a hardworking town, this inaugural theme will highlight the businesses and industries that brought wealth to the community and continue to flourish today, as well as showcase examples of that ingenuity—from bicycles and early automobiles to distilled spirits and earthmoving equipment, plus the advertising that promoted them.

A future theme of The Street is called “Will It Play in Peoria?” It will explore the importance of Peoria audiences, from riverboat and vaudeville patrons to coveted targets of modern market research. The region’s rich history provides an endless source of engaging themes and interesting stories to tell in the future.

“And on any given day, you might run into important people from the past,” said Leyland, introducing John Parks of the PRMS. Parks came in character as inventor Charles Duryea to announce the society would donate to The Street a Duryea automobile invented 110 years ago in a garage on West Barker Avenue, along with $40,000 for maintenance and exhibits explaining the vehicle’s history. “That gas-powered vehicle started people thinking in new ways,” Parks said. “It inspired Henry Ford—and we all know what happened next.”

Another important element of The Street will be an Oral History Center with a Story Booth to feature individual stories of Peoria-area residents. “Oral history has been an especially important tradition in the African-American community,” said Margie White, representing the AAHFM. “The Oral History Center will allow visitors to capture their own history, leaving with a DVD of their recording.” Selected recordings of general interest will be used by the museum in future exhibits.

The current African American Hall of Fame exhibit would be integrated into a Wall of Fame inside the Living History Center. This exhibit will honor individuals inducted into the Hall of Fame each year for having made an outstanding contribution to the Peoria African-American community.

In addition, the Caterpillar African American Network, an affinity group within Caterpillar that supports African-American employees, will donate $12,500 to the museum on behalf of AAHFM.

McMillan announced other Washington Wing exhibits will include an International Feature Gallery for special traveling exhibits—including the best exhibits the Smithsonian Institution has to offer—and traditional exhibits of fine art and folk art based on the extensive collections of Museum Collaboration Group partners. Announcements about exhibits to be included in the Liberty Wing of the museum will be made in the coming weeks, he added.

The multifaceted Riverfront Museum will join the Caterpillar Experience as key components of a planned downtown center for the arts, education and entertainment known as The Block. The $136 million project already has garnered $90 million in commitments to date, including 86 percent of the private funding and 40 percent of the public funding needed, said Michael Bryant, chairman of the CEO Roundtable, a group of prominent business leaders working to raise $8 million and the public awareness needed to help build the Riverfront Museum.

The Journal Star’s story includes pictures and diagrams.