Caterpillar shares specifics in South Milwaukee layoffs

By WEEK Reporter

Credit: MGN Online

Caterpillar shares specifics in South Milwaukee layoffs

June 15, 2013 Updated Jun 15, 2013 at 8:14 PM CDT

SOUTH MILWAUKEE, Wisc. -- Caterpillar previously announced plans to layoff production employees in June at the company's South Milwaukee, Wisconsin facility.

Friday, the company announced to its workforce the details and specific timing for those actions, which will bring production in line with demand, as stated in a release, which mentions:

Products built in South Milwaukee are used in the mining industry, and customer orders for those products are weaker than when compared to last year.

As a result, Cat has notified approximately 260 production employees that they will be placed on indefinite layoff, effective June 24, 2013. In addition, the company is announcing two, one-week temporary layoffs that will impact the vast majority of the South Milwaukee manufacturing facility, including support and management employees. 

Some cost reduction measures have already been implemented in South Milwaukee and Oak Creek, such as previously announced indefinite and temporary layoffs of up to four weeks for other support/management employees; reduced hours for production employees, travel restrictions and controlled hiring.

CAT states the company know this is difficult for employees and their families, and the company will do what it can to ensure impacted employees have support during this time.

Ultimately, with lower orders from mining customers, the company says it must take steps to bring production in line with demand.