Remember Caterpillar?

Last month on a campaign stimulus package promotion stop in East Peoria, Illinios, President Obama – while standing alongside Caterpiller CEO Jim Owens – claimed that “if Congress passes our plan, this company will be able to rehire some of the folks who were just laid off.” Unfortunately for him, Owens contradicted Obama when he left, as when he was asked whether or not Obama’s stimulus plan would stop the estimated 22,000 layoffs at Caterpillar, Owens admitted, “I think realistically no. The truth is we’re going to have more layoffs before we start hiring again …It is going to take some time before that stimulus bill [will mean we can rehire].”

Fast forward to today, where Caterpillar indeed announced more layoffs:

PITTSBURGH (AP) — Caterpillar Inc. on Tuesday announced plans to lay off more than 2,400 employees at five plants in Illinois, Indiana and Georgia as the heavy equipment maker continues to cut costs amid the global economic downturn.

Caterpillar, the world’s largest maker of mining and construction equipment, has seen its sales wither as the sluggish world economy and the credit crisis weaken demand for its products, used to build everything from houses to highways. The company had expanded dramatically in recent years, helped by a building boom in developing countries.

In response to the worsening conditions, Caterpillar in January announced job cuts that will ultimately eliminate 20,000 positions. It also said it would slash executive compensation by up to 50 percent and offer buyouts to about 25,000 U.S.-based employees. Caterpillar, which employs about 112,000 people worldwide, said it had imposed a global hiring freeze.

In the latest cuts, the Peoria, Ill.-based company said 2,365 support and management workers had been notified of layoffs expected to last at least six months — including 245 announced previously — and 89 workers will be let go permanently.

Joe Weisenthal at the Business Insider wonders:

How long can the company keep laying off workers and still remain on Obama’s most-favored list? How long before they’re vilified for being profit-mongers that don’t care about their workers. Actually, probably awhile, since our Transportation Secretary Ray LaHood is from Peoria, IL, the company’s hometown.

President Obama needs to STOP making promises he can’t keep and in the process giving people false hope. The Caterpillar crowd gathered to listen to him speak didn’t fall for it, thankfully, but others out there have and will and if he keeps it up, that “populist backlash” against the bailouts won’t be the only backlash he’ll have on his hands to deal with and try to smooth talk his way out of.

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