http://chicagobusiness.com/section/the-news-hook http://www.chicagobusiness.com en-us Sat, 18 May 2013 14:11:36 EST 10 http://www.chicagobusiness.com/article/20130517/BLOGS08/130519807/caterpillar-ceo-we-can-never-make-enough-profit?utm_source=BLOGS08&utm_medium=rss&utm_campaign=chicagobusiness 20130517/BLOGS08/130519807 spills a lot of ink on a profile of Caterpillar Inc. CEO Doug Oberhelman, positioning him as “manufacturing's mouthpiece” and claiming that his “sturdy and serious” demeanor has made him an “ideal spokesman” for the industry.

Despite asserting itself as a profile, the piece focuses largely on Caterpillar workers' stagnant wages and the company's no-holds-barred approach to union-busting, both historically and on Mr. Oberhelman's watch. The company is currently sparring with United Steelworkers over a contract at its South Milwaukee mining equipment factory.

Businessweek quotes Robert Bruno, a labor professor at the University of Illinois at Urbana-Champaign. “If there was a poster child in the business community for abusive and unnecessarily hostile labor relations, it would probably be Caterpillar,” Mr. Bruno said.

Experts often cite the company as the harbinger for the modern manufacturing company. And this hardline approach to contract negotiations has been the company's modus operandi since the 1990's, the article outlines.

As the battle wages on in South Milwaukee — union and company talks broke down last Friday and the a union spokesman said they are “giving the company some time to cool off” before returning to the negotiating table — the track record for unions standing up to Caterpillar's demands for wage and pension freezes is not good.Last May, nearly 800 employees represented by the International Association of Machinists and Aerospace Workers walked off the job at a Caterpillar factory in Joliet, only to come back three months later to a worse contract than when they walked out.

Even as Businessweek quotes workers like John Arnold, a parts auditor at Caterpillar's Morton distribution facility who says some of his co-workers "are on food stamps," the magazine also writes that "The dwindling number of manufacturing jobs combined with the decline of unions has weakened workers' leverage."

When Caterpillar offers jobs in nonunion Southern states that pay $12 an hour, Businessweek continues, "applicants line up around the block. 'You're basically expendable,' says Emily Young, a welder who has worked at Caterpillar's Decatur plant for eight years. 'For every one person who doesn't work, there's five waiting in line.'”

The piece also notes that Mr. Oberhelman is an outspoken critic of the current educational system. "We spend more money on education than we ever have, and we get less for it,'” Mr. Oberhelman said. "I, for one, struggle a little bit with a $250,000 education for a philosophy degree. They are a wonderful people, but we can't employ philosophers in manufacturing in the United States."

Oberhelman paid his way through Millikin University, a small private college in Decatur, "by working at a bank, where he did everything from sign home mortgages to repossess cars."

"It was a fabulous experience," he told Businessweek. "You knock on the door, and you tell somebody you're gonna take their car away — and usually they're down on their luck, and their car is the last thing they have. So I learned to deal with that."

The piece ends on a quote that makes you wonder if Caterpillar will ever allow itself to up workers' wages, even with all the flak Mr. Oberhelman got after he received a 32 percent raise in April to $22.4 million. “'The answer to that is: when we start to see economic growth through GDP," he said. "Part of the reason we're seeing no inflation is because there's no growth. Inflation was driven by higher labor costs, not higher goods costs. Frankly, I'd love to see a little bit of that. Because I'd love to pay people more. I'd love to see rising wages for everybody."

“I always try to communicate to our people that we can never make enough money,” Mr. Oberhelman said. “We can never make enough profit.”

— Meribah Knight]]> Fri, 17 May 2013 04:00:00 EST http://www.chicagobusiness.com/article/20130517/BLOGS08/130519794/more-food-disappearing-from-mcdonalds-menu?utm_source=BLOGS08&utm_medium=rss&utm_campaign=chicagobusiness 20130517/BLOGS08/130519794
The Oak Brook-based chain may trim four more items from its more than 100 offerings, according to a Bloomberg News report citing an email from an unidentified franchise owner.

Caesar salads, McSkillet Burritos, Southern Style Biscuits and steak bagels may be eliminated as the company tries to manage a menu that has swelled to 145 items. McDonald's has added 60 items since 2007, and the volume has contributed to longer wait times at the front counter and drive-through, according to Bloomberg News.

A McDonald's spokeswoman declined to confirm details and said the company is "constantly adding and removing menu items."

McDonald's last week axed its Angus third-pounder burger line in favor of beefing up its Quarter-Pounder line.

The company in February stopped selling its fruit and walnut salads and Chicken Selects.

— Lorene Yue]]> Fri, 17 May 2013 10:00:00 EST http://www.chicagobusiness.com/article/20130516/BLOGS08/130519831/activists-turn-to-indiegogo-to-buy-tribunes-newspapers?utm_source=BLOGS08&utm_medium=rss&utm_campaign=chicagobusiness 20130516/BLOGS08/130519831 new Indiegogo campaign is trying to stop you from buying the Tribune Co.'s newspaper group.

"It's time for ordinary people to take back the media. Help us democratize the Tribune Company," reads the Indiegogo post, which was created by The Other 98%, a non-profit organization "dedicated to shining light on economic injustice, strengthening democracy, and challenging corporate influence."

The group refers to a recent estimate from Lazard Ltd. that the Tribune's newspaper group is worth around $600 million, writing, "The Tribune Company which houses the Los Angeles Times, The Balitimore Sun and The Chicago Tribune (along with many other local newspapers) is up for sale! The Bad News: The only people who are bidding on it right now are infamous right-wing Billionaires, who are likely to pay something around a $660 Million pricetag to control a big slice of trusted news media." (Lazard had estimated the worth of Trib's newspaper group as $623 million.)

The post offers titles to people who donate, depending on the amounts, starting with $10 ("Press Protector"), $25 ("Fox News Nemesis"), $50 ("Muckracker"), $100 ("Media Mogul), $250 ("1st Amendment Warrior"), $500 ("Truth Champion") and $1,000 ("Koch Blocker")

]]> Thu, 16 May 2013 12:43:34 EST http://www.chicagobusiness.com/article/20130515/BLOGS08/130519851/pritzker-got-54-million-from-bahama-trust-report?utm_source=BLOGS08&utm_medium=rss&utm_campaign=chicagobusiness 20130515/BLOGS08/130519851
Government ethics advisers determined that her keeping the stock after resigning from Hyatt's board and recusing herself from company decisions would not affect the 54-year-old Chicagoan's ability to serve as commerce secretary, Bloomberg reported. Her income last year included $53.6 million from CIBC Trust Co. (Bahamas) Ltd. for consulting services and $1.54 million from Pritzker Realty Group LP.

Among other holdings up for divestiture are interests in Warren Buffett's Berkshire Hathaway Inc. of Omaha, Neb.; El Paso Pipeline Partners LP of Houston; Wells Fargo & Co. of San Francisco; and a private-equity energy fund run by Goldman Sachs Group Inc., Bloomberg said.

Although Ms. Pritzker has already drawn attention for disputes with labor and her family's use of foreign tax havens, so far she hasn't drawn the heat that other Cabinet picks have from the opposing party.

The commerce post has diverse responsibilities, from overseeing patents and the census to monitoring the weather and enforcing trade laws. It's one of the second-tier Cabinet positions, and the job typically goes to a well-heeled, close friend of the president.]]> Wed, 15 May 2013 17:49:21 EST http://www.chicagobusiness.com/article/20130515/BLOGS08/130519852/billionaire-investor-peltz-doubles-mondelez-stake?utm_source=BLOGS08&utm_medium=rss&utm_campaign=chicagobusiness 20130515/BLOGS08/130519852 the Chicago Tribune reported today.

Mr. Pletz last month disclosed a $494.2 million stake in Mondelez and a $269.1 million stake in PepsiCo as of Dec. 31. The move sparked talk that the billionaire corporate raider aims to reprise the two-act drama he orchestrated three years ago with Kraft Foods Inc. and Cadbury PLC.

Peltz's disclosures came at a sensitive time for both Mondelez and PepsiCo. Mondelez, which makes Oreo cookies, Ritz crackers and Cadbury chocolates, has stumbled in its first quarters as an independent company after splitting from Kraft Foods.

(Related: Joe Cahill: If Mondelez merges with Frito-Lay, who becomes queen?

The AP reported last month that PepsiCo, which makes Frito-Lay, Tropicana and Quaker Oats, is "reviewing restructuring options for its underperforming North American beverage business, including a possible spinoff. If that were to happen, analysts have speculated that PepsiCo would want to buy another snack food maker to remain as big as it is today."

"It could be that Peltz has no intention to agitate for a merger," the AP wrote. "But the New York native is known for building stakes in companies then forcing change."]]> Wed, 15 May 2013 17:26:35 EST