How To Strike A Balance When Workers Strike

The threat of permanent replacements is a dynamite tactic to break a strike, as recent events in Peoria show. But there is still the question of whether the tactic is valid in labor relations. We believe the United Auto Workers was wrong to insist that Caterpillar Inc. settle on the same terms Deere & Co. granted last year. The two are quite different: Cat, which exports 60% of its U.S. production, barely competes against Deere, which is largely a domestic company. Cat's main rival is Japan's Komatsu Ltd.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.