In U.S., a Cheaper Labor Pool

January 6, 2012: Trying to persuade locked-out workers in Canada to accept a sharp cut in pay, Caterpillar Inc. is citing lower wages elsewhere. But instead of pointing to the usual models of cheap and pliant labor, such as China or Mexico, it is using a more surprising example: the U.S.

Wage and benefit costs at a Caterpillar rail-equipment plant in LaGrange, Ill., are less than half of those at the company's locomotive-assembly plant in London, Ontario, Caterpillar says.

Click here to read more at The Wall St. Journal.


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