John T. Shaw

John T. Shaw

Top CAT execs erode trust in corporate America

Spread the love

By John T. Shaw

Editor’s Note: This op-ed was distributed by Capitol News Illinois on behalf of the Paul Simon Public Policy Institute. The opinions expressed in this article are the author’s own.

Like many Illinoisans, I was saddened to learn that Caterpillar Tractor Company is moving its world headquarters from our state to Texas.

CAT has been an important company in Illinois. It has been especially vital to my hometown of Peoria, where its world headquarters were located for nearly nine decades. My dad was a civil engineer who spent his entire career at CAT and working there allowed my parents to put six kids through college. I have always been grateful to the company and admired its deep commitment to Peoria. It was the pillar of the community and appeared to relish that role.

GSWNH JohnShaw 120321

John T. Shaw

 

But it’s not for solely personal reasons that I find CAT’s decision to leave Illinois troubling.

First, when a company moves its global headquarters, its active commitments shift, which has a profound effect on the community left behind. People’s lives are changed, and communities are altered forever. This is especially true for Peoria, which built its economic and cultural life around CAT. Peoria is welcoming new firms and industries, but the path ahead is daunting. The city will never be the same.

Second, I have been troubled by some of the reaction to CAT’s decision. I have read several articles that have been full of recriminations and finger pointing. Several analysts have seized on CAT’s decision to reprise familiar arguments about Illinois’ unfriendly business climate. While we must do more to address our state budget and improve our worker’s compensation system, Illinois continues to attract scores of new firms and remains the global home for dozens of major companies. I see no credible evidence that Illinois’ overall business climate was a major factor in CAT’s decision.

Third, I am especially disappointed in public comments made by CAT’s senior executives over recent years that have been confusing and contradictory, edging toward disingenuous.

In February 2015, CAT CEO Doug Oberhelman announced plans for a magnificent new global headquarters in Peoria. He brandished a video with a striking architectural rendering of a gleaming new complex with three towers and offices for more than 3,000 employees on 30 riverfront acres.

“We’re here in Peoria to stay. Our long-term future is here,” Mr. Oberhelman declared at a public event attended by cheering business, civic, and political leaders, including then-Gov. Bruce Rauner.

“Caterpillar will stay in Peoria. I repeat, we will stay in Peoria,” CAT’s leader pledged.

Less than two years later, CAT issued a press release saying it would “locate a limited group of senior executives and support functions in the Chicago area later this year.” The company “reaffirmed the ongoing importance of its presence in Peoria and Central Illinois.”

When the statement was fully unpacked, it was clear that CAT was moving its global headquarters to suburban Chicago.

“Locating our headquarters closer to a global transportation hub, such as Chicago, means we can meet with global customers, dealers, and employees more easily and frequently,” said Jim Umpleby, CAT’s new CEO. He added: “We value our deep roots in Central Illinois and Peoria will continue to be our hometown.”

Then on June 14, 2022, Mr. Umpleby announced that CAT was leaving Deerfield for Irving, Texas. “We believe it’s in the interests of the company to make this move, which supports Caterpillar’s strategy for profitable growth as we help our customers build a better, more sustainable world,” he said opaquely.

Pressed for a fuller explanation, a CAT spokeswoman said the Texas location “will give us the ability to attract new talent and provide additional career opportunities for our current employees to aid in retention.” How would this help CAT retain its workers? Is CAT moving to Texas so that its workers will find “additional career opportunities” with other firms in that state?

CAT has every right to locate its global headquarters where it wishes, and I appreciate that circumstances change. CAT still has more than 17,000 employees in Illinois and about 12,000 in the Peoria area.

I believe that CAT has a responsibility, as a good corporate citizen, to explain honestly and clearly why it is making its decisions. That does not seem too much to ask of a firm that referred to itself as a “great American company” in a U.S. Senate hearing. It is deeply disappointing that CAT has failed to honor commitments and offers empty rhetoric instead. This behavior is unworthy of a “great American company” and is unfair to the people of Illinois.

The Pew Research Center periodically publishes a study that measures Americans’ declining distrust in various institutions. Not surprisingly, the least trusted group is our elected officials. The next least trusted group is America’s business executives.

Unfortunately, the current leadership of CAT has given us additional reasons not to trust the words of corporate America.

John Shaw is the director of the Paul Simon Public Policy Institute at Southern Illinois University Carbondale. Shaw’s monthly column explores how Illinois can work toward better politics and smarter government.

1 Comment

  1. Tom Eckhoff on July 25, 2022 at 3:40 pm

    Your credibility to comment on Caterpillar, Inc., is questionable when you do not even know the correct name of this Delaware incorporated company. I believe they will continue to move to right to work, corporate friendly states, away from Illinois. Just ask UAW Local 974 how much their membership has been reduced over the past 30 years. After over 40 years of service, I have watch it happen and I am sure it will continue.



Local News

GSWNH_ChuyStarbucks_012822

Chuy backs Starbucks unionization

Spread the love

Spread the love U.S. Rep Jesús “Chuy” García (D-4th), white mask, recently stood with those who support unionization of Starbucks workers, outside a shop in the city. Workers are attempting to organize under the banner of Chicago and Midwest Joint Board, Workers United, an affiliate of the Service Employees International Union. –Supplied photo

Sophomore Danni Scully of Nazareth is triple-teamed by Marist in a 53-42 victory in LaGrange Park on Jan. 19. Photo by Jeff Vorva

‘Grizzled’ sophomores help Naz beat Marist

Spread the love

Spread the loveBy Jeff Vorva Staff Writer Nazareth’s “grizzled veterans” have won 19 of their first 20 games. The Roadrunners’ were victorious in a big East Suburban Catholic Conference showdown with Marist, with two sophomores doing most of the damage in a 53-42 win in LaGrange Park on Jan. 19. Nazareth improved to 19-1, 4-0.…

Sandburg’s boys bowling team is headed to state for the first time since 2017 after winning its own sectional on Saturday. Photo courtesy of Carl Sandburg

Postseason Sports Report: Area stars ready for state bowling and dancing

Spread the love

Spread the loveBy Jeff Vorva Staff Writer The first two IHSA state tournaments for winter sports will take place this weekend, and an army of area athletes will be competing in both. The boys bowling and competitive dance championships will be held Friday and Saturday, with the bowlers heading to St. Clair Bowl in O’Fallon…

Stagg coach Marty Strus gets ready to talk to his players during Friday night’s game against Andrew. Photo by Jeff Vorva

Strus tops former coach in Stagg’s win over Sandburg

Spread the love

Spread the loveBy Jeff Vorva Staff writer Marty Strus has nothing but good things to say about his former high school coach, John Daniels. “He’s meant a ton to me,” Strus said of the coach he faced off against last week when his Stagg Chargers took on Sandburg. “He meant a lot to me as…

palos tax appeal flyer for 1-26-22

Palos Township tax appeal workshop on January 26

Spread the love

Spread the love

For 68 years the Palos Area Chamber of Commerce has remained actively involved in the everyday life of the Palos area, residents and business community. (Supplied photo)

Palos Area Chamber dedicated to promoting area 

Spread the love

Spread the loveBy Kelly White  Dedicated to helping local area businesses strive is the Palos Area Chamber of Commerce. The chamber was formed in 1949 when a small group of merchants joined together for the purpose of advancing economic, industrial, professional, cultural, and civic welfare of the Palos Heights area. For 68 years, the Palos…

Peggy Zabicki

We need real solutions to crime

Spread the love

Spread the loveBy Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place •  (773) 504-9327 Crime and safety concerns are the number one topic of all the calls and texts I receive. It seems that many politicians offer no solutions except the usual lists of ways to keep safe. I think everyone knows about locking…

Mary Stanek

Icy spill yielded plenty of good will

Spread the love

Spread the loveBy Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place •  (773) 284-7394 Here is a giant shout out to our first responders in the community. On Jan. 9, when a sheet of ice descended on Chicago, I was walking the dog. Walking around Peck School was great.…

Joan Hadac

It’s a busy January in Gage Park

Spread the love

Spread the loveBy Joan Hadac Neighborhood correspondent at large Greetings, Gage Parkers! I’m pleased to be filling in this week for Karen Sala. It’s fun for me to report on Gage Park, the neighborhood where I lived for the first 26 years of my life. There’s always something happening in this big, exciting part of…

Kathy Headley

You can bank on good service here

Spread the love

Spread the loveBy Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 In this world of corporate takeovers, it is kind of hard to feel safe in the hands of big business. First, we have to supply some of our personal information to the automated system. Then there’s…

Neighbors

volleyball

Boys Volleyball | Sandburg seeks 26th regional title

Spread the love

Spread the loveBy Randy Whalen Correspondent Coming off the worst season in program history in 2023, Sandburg was not going to settle for anything less than better results this year. Past the midway point of this season, however, the Eagles had a record of 11-8. But they closed the regular season strong, winning 11 of…

Reavis players celebrate after the Rams clinched the South Suburban Red title with a 3-0 win over Oak Lawn. Photo by Xavier Sanchez

Baseball | Red-hot Reavis looks to make noise in postseason

Spread the love

Spread the loveBy Xavier Sanchez Correspondent Reavis is determined to send their head coach Don Erickson into retirement on a high note and will head into the postseason red hot and as South Suburban Red champions. The Rams defeated Oak Lawn 3-0 for the second straight day on May 15 to clinch the conference title.…

Richards alum Sebastian Castro is ranked by NFL Draft Live among the top 10 college cornerbacks heading into the 2024 NCAA football season. Photo courtesy of University of Iowa Athletics

Sports Bits | Rice boats at Carlyle Lake, Hawkeye DB and Do It Stevie’s Way

Spread the love

Spread the loveBy Jeff Vorva Correspondent Noteworthy sports briefs from May 12-19 • Brother Rice’s No. 1 boat of Joe Hall and Joe Judeh took 31st in the state bass fishing tournament, which wrapped up on May 18 at Carlyle Lake. The Crusaders had a two-day haul of 7 pounds, 12 ounces.  The Crusaders’ No.…

SRP-IMAGE-Logo

Nothing NU at SeatGeek

Spread the love

Spread the loveBy Jeff Vorva Correspondent There was speculation that because of the renovations being done at Ryan Field, Northwestern would schedule a few football games at SeatGeek Stadium in Bridgeview this fall. The Wildcats announced their schedule and no home games are listed at SeatGeek, but the situation is still fluid. They are opting…

SXU softball players celebrate a victory over Bellevue. SXU photo

College Softball | Close losses at nationals end Saint Xavier’s season

Spread the love

Spread the loveBy Jeff Vorva Correspondent The Saint Xavier softball team played three nailbiters in the opening round of the NAIA Tournament. But the end result was a 1-2 record to eliminate the Cougars from advancing. SXU (28-14) opened the tournament by nipping Bellevue (Nebraska), 5-4, in Sioux City, Iowa on May 13. Alexus Reese…

Red Stars goalie Alyssa Naeher was with the team but did not play at Gotham on May 19.  IMAGN photo

Red Stars’ Naeher misses loss to Gotham

Spread the love

Spread the loveBy Jeff Vorva Correspondent The world’s best kept secret is still a mystery. The Chicago Red Stars are not releasing information to the public about the severity of a thigh injury or the status of world-class goalie Alyssa Naeher. What is known is that she did not play in a 2-1 loss to…

CRRNH_PattiTyznik_102622

Summer calendar filling up quickly

Spread the love

Spread the love. By Patti Tyznik Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • ptyznik@gmail.com . Summer is rapidly approaching, and the neighborhood is geared up for lots of great summer fun and activities. The Midway Chamber of Commerce’s farmer’s market will be opening on Wednesdays at the end of May through September…

SRP-IMAGE-Logo

Shepard’s Kyla Motley cruises to two medals at girls state track finals

Spread the love

Spread the loveBy Jeff Vorva Correspondent Shepard junior Kyla Motley medaled in two events in the Class 3A girls state track and field meet, the finals for which were held May 18 at Eastern Illinois University in Charleston. Motley finished fourth in the long jump with a leap of 18 feet, 4 inches. She finished…

SRP-IMAGE-Logo

Boys Tennis | Lyons’ Jack McLane and Mason Mazzone win sectional doubles title

Spread the love

Spread the loveBy Jeff Vorva Correspondent The area produced a handful of boys tennis state qualifiers, but only one entry is headed to state as a sectional champion. At the Class 2A Lyons Sectional, the Lions’ Jack McLane and Mason Mazzone were doubles champs. The state meet opens May 23 at various sites in the…

The Lyons boys water polo team celebrates its state championship on May 18 in Lincolnshire.  Photo courtesy of Lyons Township High School

Water Polo | Lyons boys win third state title; girls finish 3rd

Spread the love

Spread the loveBy Jeff Vorva Correspondent The best matchup of the IHSA boys water polo state tournament was arguably in the quarterfinals. That battle between Lyons and New Trier could have been considered the real state championship match. But no matter what, the Lions are state champions. Heading into the postseason, Lyons had just three…