Shares of Caterpillar Inc. CAT, +3.67% climbed 4.2% in midday trading Wednesday, enough to lead the Dow Jones Industrial Average’s DJIA, -0.06% gainers, after the construction- and mining-equipment maker said it reached a six-year “tentative labor agreement” with the United Autoworkers (UAW) union. The stock’s $9.94 price gain added about 66 points to the Dow’s price, while the Dow advanced 68 points, or 0.2%. “The union will schedule a ratification vote soon, and we will communicate the date,” Caterpillar said in a statement. “The current agreement will be extended until the voting is complete.” The tentative agreement comes as the “Central Labor Agreement” expired on March 1. In Caterpillar’s 2022 annual report filed in mid-February, the company said there were approximately 7,980 hourly employees in the U.S. who were covered by labor unions. The company had 109,100 full-time employees as of Dec. 31. Caterpillar’s stock has now gained 5.9% over the past three months while the Dow has lost 4.9%.
This article was originally published by Marketwatch.com. Read the original article here.
