Tech
CNH, UAW reach agreement to end strike
The nearly nine-month strike against CNH Industrial, the manufacturer of Case and New Holland construction and agricultural machinery, ended January 21 with the ratification of a new contract with the United Auto Workers union members.
Approximately 1,100 workers went on strike at two plants – 400 in Burlington, Iowa, and 700 in Racine, Wisconsin – on May 2 to challenge wages, overtime, vacation and retirement benefits.
The agreement, which was approved, was reportedly an improved version of CNH’s “last, best and final offer” that was rejected by UAW members on January 7. According to UAW officials, the new contract provides wage increases, shift premium increases, classification upgrades as well as other improvements.
A union official told The Hawk Eye Newspaper that members voted 62.4% in favor and 37.6% against the proposal this time. In addition, the vote reportedly came after CNH issued a letter to UAW members informing them of an intention to hire 220 permanent replacement workers.
Officials did not disclose any details of what is included in the contract. Previously, the company said the last offer that workers rejected included wage increases of 28% to 38% over four years. CNH did not immediately respond to questions Sunday.
“This agreement reflects the effort of a determined bargaining team and members being on an almost nine-month strike,” said Ray Curry, UAW president. “UAW members at Locals 180 and 807 did the hard work to strengthen the hand of negotiators.”
UAW President Ray Curry said UAW members at Locals 180 and 807 did the hard work to strengthen the hand of negotiators.UAW Local 180Workers are expected to return to the plants Monday, January 23.
Throughout a nearly nine-month-long walkout, only two votes were taken on any contract offers. The workers rejected CNH’s initial offer and voted to strike on May 2. No votes were taken on any contract offers again until January 7, and then again to ratify a contract on January 21.
“Our negotiators tenaciously bargained to the very end, even fighting for contract improvements in the face of threats from CNHI to hire permanent strike replacements,” said Chuck Browning, UAW vice president and director of the agricultural implement department. “Combined with the incredible support from our members, it’s remarkable what had to be endured to achieve this contract.”
The strike started about seventh months after a similar challenge by 10,000 John Deere workers in October 2021 that lasted five weeks and concluded with employees receiving 10% raises and improved retirement benefits.
Negotiations are currently underway between UAW and Caterpillar to extend the current six-year agreement that expires on March 1, 2023. Central bargaining is slated to begin this week after negotiations on four local agreements were held from January 9 to 20. Union officials have reportedly set a strike authorization vote for January 27. That vote does not call a strike but gives the union the ability to do so if deemed necessary.
Both the Burlington and Racine CNH facilities remained operational throughout the strike. CNH brought in a temporary workforce within days of the strike to ensure the plants continued to operate. Even amid the strike, the company said its third-quarter profits jumped 22% to $559 million.
Union officials suggested the temporary workforce was assembled before the contract deadline, possibly in anticipation of the strike being called. It has not been defined what sort of wages these workers are being paid, although reports have indicated as much as $27 an hour, which exceeds pay rates for current employees.
As the strike continued, union members in both communities started taking other jobs.
Traditional UAW strike rules prevent striking members from having a job that provides more than what strike pay is being allocated. For the CNH strike, that rule was not applied, and several members found other part- or full-time jobs and continued to receive strike pay if they completed four hours of strike duty per week.
Some workers are expected to not return upon finding higher paying jobs. Per union rules, the members do not have to tell the union if they don’t intend to return to work once a contract is ratified.
Before January 7, no formal vote had been taken on any offer presented to the union by CNH. The last formal offer presented by CNH on May 19 was rejected by UAW with no vote being taken because the offer fell far short of the members’ bargaining agenda. CNH described that offer as a significant financial boost from its original offer on May 1.
The two sides returned to the bargaining table on June 14 after U.S. senators, including Bernie Sanders, D-Vt., and Tammy Baldwin, D-Wis., sent a letter to the company and visited the picket lines at the plants. However, union leaders said CNH showed little movement from its May 19 proposal, merely moving some of the money around to make it appear different from the previous proposal.
The two sides returned to the bargaining table on June 14 after U.S. senators, including Bernie Sanders, D-Vt., and Tammy Baldwin, D-Wis., sent a letter to the company and visited the picket lines at the plants.UAW Local 180Based on the content of the proposal, negotiations halted again with no future dates scheduled until the meetings that started on August 15 and continued the following week with little success.
At the end of September, CNH reportedly put an offer on the table as the first document that it called its “last, best and final” offer. Some reports suggested that offer almost came to a vote. However, union leadership denies this, saying it was “unacceptable” in the form it was written.
Following those negotiations, CNH placed ads in local media near both facilities highlighting details of the proposal that allegedly was not presented to the union members in full.
The updated version of CNH’s “last, best and final offer” was barely discussed when presented for a vote and rejected by union members on January 7. The vote on January 7 was reportedly divisive between the two plants. The final tally came down to 55% of voting members rejecting the proposal and 45% voting in favor and ready to return to work. The division in vote was nearly split between the two plants, with the offer reportedly garnering approval in Burlington and rejected in Racine.
According to the Associated Press, the CNH strike was one of the longest ones in the recent spate of strikes since the pandemic. Workers at a variety of companies have been demanding and getting significant raises and better benefits amid widespread worker shortages. New unions have been established at Starbucks stores and Amazon warehouses, although some locations have rejected unions.
Caterpillar is bidding farewell to its 259D3, 279D3 and 289D3 compact track loaders with the introduction of its new, next-generation 255 and 266 models.
The completely redesigned models debuted at media and customer events at Caterpillar’s Edwards, Illinois, Demonstration and Learning Center last week. The 255 and 265 offer improved engine performance, more lift height, a roomier cab and more standard technology than their predecessors.
“We kept the DNA of the D3 series while reimagining the possibilities of loader performance using voice of customer feedback to lead the way,” says Trevor Chase, product application specialist for Caterpillar. “Both next-generation models leverage the many benefits offered by the vertical lift design. The new Cat 255 replaces the 259D3, while the 265 replaces both the 279D3 and 289D3 machines.”
The CTLs are the last of Cat’s building and construction products to get the next-generation treatment and simplified nomenclature. The first number (2) represents the skid steer loader and compact track loader machine family; the middle number (5 or 6) designates the machine size; and the ending number (5) is the compact track loader identifier. Skid steers will be identified by a 0 end number. Additional new models will roll out in the coming months, the company says.
CaterpillarMore power and torque
Cat equipped the 255 with a C2.8T engine and the 265 with a C2.8TA engine, both at 74 horsepower. This gives the new machines a significant boost in torque – 13% for the 255 and 43% for the 256 – over their D3-Series predecessors. The engine and cooling package are mounted lower in the frame for added visibility out the rear window and stability while lifting heavy loads.
Customers attest that the added lift height makes truck loading easier. The 255 offers 10 feet 4 inches of lift height, while the 265 can reach 11 feet high.
“The lift height has made a big difference when loading trucks,” said Derrick Roger, owner of Coast to Coast Lawnscapes, who spent several months testing the 255. “You can get on top of that truck now and empty the bucket; whereas, before you would have to shake the bucket to try to get the material to fall out.”
The 255 delivers 36% more tilt breakout, 26% higher lift breakout force and a 24% increase in rated operating capacity (ROC). The 265 also delivers 19% higher tilt breakout force and 22% higher lift breakout force.
Standard hydraulic pressure has been increased to 3,500 psi, allowing the 255 and 265 to operate all Cat Smart Attachments with the standard auxiliary hydraulics provided.
If demanding attachments require additional hydraulic flow, customers can have their Cat dealer activate the high flow functionality on the machine or remotely via software update. This makes it possible for the CTLs to hit 30 gallons per minute of flow at the standard system pressure.
A High Flow XPS factory option increases auxiliary hydraulic system pressure to 4,061 psi for both models, while also increasing the hydraulic flow to 30 gallons per minute for the 255 and 34 gallons per minute for the 265.
The torsion suspension undercarriage delivers better operator comfort, track wear and material retention, plus the stiffer design results in smoother graded surfaces, Cat says. A new 12.6-inch bar-tread narrow track option is available on the 255.
A more spacious cab
Cat says it has increased the cab width by 2.75 inches without making the machines wider and the footwell-to-ceiling height by 1.8 inches. The larger cab gives operators an additional 1.5 inches of hip room and 1.1 inches more width between the joysticks.
A range of new mechanical and air-ride suspension seat options are available, including a ventilated and heated seat. A new automatic temperature control allows operators to set a specific temperature. Relocated vents help cool or heat the machine quickly.
The standard package includes the same 5-inch LCD monitor as the D3 Series CTLs, which offers Bluetooth connectivity and functionality for the rearview camera feed, creep, job clock, and maintenance reminders.
Customers can upgrade to a new 8-inch advanced touchscreen monitor, like the display found in Cat’s next-generation mini excavators and small loaders. It delivers advanced radio control and supports the 270-degree multicamera option. The advanced monitor pairs with the advanced joysticks for integrated control of all machine functions and adjustments.
“You can adjust the movement – or the aggressiveness or the conservativeness – of how your tracks and lift arms work through your advanced touchscreen display,” Dante Thomas, skid steer and CTL marketing manager, said. “And you can control of all of your display functions from the advanced joysticks. There are buttons with enter and select functions on those joysticks that you’re able to change any functionality that is possible.”
Cat also redesigned the entry, making the 255 and 265 easier to enter and exit. The cab door can be opened even when the lift arms are not fully lowered to the frame stops. It can be removed without tools in less than one minute.
Advanced technologies
Calling the 255 and 265 “one of the most attachment-friendly machines on the market,” Thomas says both the standard and advanced monitors can run Cat Smart Attachments, such as the dozer and grader blades and backhoe.
“It has attachment recognition that when you plug the attachment into the machine, it recognizes which attachment is connected. It adjusts your joystick pattern, so it gives you intuitive and simple control,” says Thomas.
The available Cat Product Link Elite system tracks machine hours, location, asset utilization, provides fault code details and delivers advanced monitoring and machine health, that is remotely accessible via VisionLink. In addition, Product Link Elite provides remote flash and troubleshooting capabilities and quickly enables the remote activation of the SEA High Flow feature.
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Quick Data is a snapshot of new and used wheel loader sales trends from Randall Reilly’s EDA equipment financing data, TopBid auction price service and EquipmentWatch market trend reports.
Demand for wheel loaders has softened with new and used financed wheel loader sales down year-over-year from August 1, 2022 to July 31, 2023 according to Randall Reilly’s EDA equipment financing data.
Financed new wheel loader sales dropped 10%, while used financed wheel loader sales fell by 15% compared to the same period last year.
Cat (22.4%), Deere (21.0%) and Komatsu (12.4%) held their positions year-over-year as the top three sellers of new financed wheel loaders. Top models sold included the Deere 544 P-Tier (401), Deere 624 P-Tier (380) and the Komatsu WA270-8 (364).
[Watch: “A Really Solid Machine” – Test Run of Komatsu’s WA475-10 Wheel Loader]
Cat (28.5%) and Deere (22.9%) also snagged the No. 1 and 2 positions for the highest number of financed used units sold, with Case (14.7%) claiming the third spot. On the date we examined the data, the top-selling models were the Case 321F (340), Cat 926M (164) and the Case 621G (159).
During this period, there were more buyers of new loaders in Florida (955) than in any other state. Buyers of new wheel loaders were also prevalent in Texas (893) and Illinois (665). Those states were also top buyers of used financed machines, with 712 units sold in Texas, 413 in Florida, and 412 in Illinois.
EDA data is compiled from state UCC-1 filings on financed construction equipment. EDA continually updates this data as information comes in from each state.
[Related Content: A Rundown of the Latest Wheel Loaders for 2023]
Used Wheel Loader Market
Used wheel loader prices rose 10.1% for the 12-month period from August 1, 2022 to July 31, 2023, according to Randall Reilly’s EquipmentWatch market trend data.
The average price for a used wheel loader was $137,465 in July 2022 compared to $151,367 in July 2023. The average age of used wheel loaders fell slightly during the period, dropping from 8.8 years to 8.3 years.
EquipmentWatchThe average age and price were calculated on 153,356 resale listings during the period in the EquipmentWatch database.
Over the last 12 months, prices for used wheel loaders have in general increased, with the largest gains in October 2022 (6.5%) and February 2023 (2.9%).
EquipmentWatch defines fair market value (FMV) as the monetary value of an asset that can be expected in a transaction with a single seller and single buyer, neither of whom is under any compulsion or time restriction to complete the transaction. FMV for heavy equipment is most closely associated with the private resale market, as opposed to the public auction market.
Wheel Loader Auction Prices
Caterpillar also dominated the auction charts, accounting for 18 of the top 20 wheel loaders sold in terms of price for the 12-month period of September 1, 2022 to August 31, 2023. Deere and Komatsu were the only other manufacturers to appear on the list.
The top auction price spot went to a 2021 Cat 966M with 2,188 hours. It sold for $400,000 at a Ritchie Bros. auction in Orlando, Fla., on September 21, 2022. The second-highest price paid was $315,000 for a 2019 Cat 980M with 7,836 hours at another Ritchie Bros. sale in Atlanta, on December 1, 2022. Rounding out the top three was a 2018 Deere 944K with 8,941 hours. It sold for $290,00 at a J.M. Wood Auction Co. sale in Montgomery, Ala., on March 21, 2023.
In total, there were 358 wheel loaders sold at auctions tracked by Top Bid during this time, with an average price of $99,747. (This does not include any units sold for less than $5,000.)
EDA, Top Bid and EquipmentWatch are owned by Randall Reilly, parent of Equipment World.
[Related Content: Heavy Equipment Auctions Set for Second Half of 2023]
Volvo Construction Equipment bought Terex’s off-road truck line in 2014, and six years later, it rebranded its articulated haulers under the Rokbak name.
On this episode of The Dirt, we hear from Paul Douglas, Volvo vice president of rigid haulers, who explains the differences between the old Terex line and the Rokbak trucks. He also gives a hint at some of the new things coming from Rokbak, including redesigned cabs and replacing the current trucks with new models. There’s also the possibility of a new size truck to hit the market.
Rokbak, as with other construction equipment brands, is working toward a zero-emissions future. On this episode, he explains where the articulated dump truck market is heading in terms of alternative fuel. He adds that customers will see big changes in emissions and engines in the next five years, with the ultimate goal of reaching zero emissions within 10 years.
So to learn more about Rokbak and what the brand has in store for the future, check out this episode of The Dirt.
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