---
title: "Meaning & Key Takeaway of: In January 2012, Caterpillar locked out…"
description: "\"In January 2012, Caterpillar locked out union workers at a locomotive factory in Ontario after they rejected a pay cut of about 50 percent; the company..."
image: "https://sms4smile.com/quotes/i/184/mina-kimes-19878_business_in-january-2012-caterpillar-locked-out-u_1088424.jpg"
---

#  In January 2012, Caterpillar locked out union workers at a…

![“In January 2012, Caterpillar locked out union workers at a locomotive factory in Ontario after they rejected a pay cut of about 50 percent; the company shuttered the plant and moved production to Muncie, Ind., where workers accepted lower wages.” quote by Mina Kimes](https://sms4smile.com/quotes/i/184/mina-kimes-19878_business_in-january-2012-caterpillar-locked-out-u_1088424.jpg)   [Download](https://sms4smile.com/quotes/i/184/mina-kimes-19878_business_in-january-2012-caterpillar-locked-out-u_1088424.jpg) [Open image](https://sms4smile.com/quotes/i/184/mina-kimes-19878_business_in-january-2012-caterpillar-locked-out-u_1088424.jpg)

> “In January 2012, Caterpillar locked out union workers at a locomotive factory in Ontario after they rejected a pay cut of about 50 percent; the company shuttered the plant and moved production to Muncie, Ind., where workers accepted lower wages.”

[Mina Kimes](https://sms4smile.com/quotes/author/mina-kimes/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Corporations may relocate labor to cut costs, forcing workers to accept lower wages or lose jobs.

**In simple terms:** Companies move to cheaper labor, hurting workers.

Key Takeaway

Consider the human cost of cost‑cutting decisions.

Themes

labor economics corporate strategy workers' rights

Mood

critical analytical

Type

economic journalistic

When to use this quote

- manufacturing
- transportation
- industrial policy
- employment law

Key Concepts

Outsourcing union negotiations globalization

Questions to Reflect On

- How should companies balance profit with employee welfare?
- What alternatives exist to layoffs?

A Different Perspective

Cost savings can damage brand reputation and employee morale.

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[Business](https://sms4smile.com/quotes/about/business/) [Caterpillar](https://sms4smile.com/quotes/about/caterpillar/) [Locomotive](https://sms4smile.com/quotes/about/locomotive/) [Plant](https://sms4smile.com/quotes/about/plant/) [Workers](https://sms4smile.com/quotes/about/workers/)

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