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CAT Turns To Rolling Layoffs At Illinois Plant

Caterpillar has instituted rolling layoffs at its Pontiac plant, allowing the heavy equipment maker to furlough the entire work force for a time while remaining in operation.

PONTIAC, Ill. (AP) -- Caterpillar Inc. has instituted rolling layoffs at its Pontiac plant. The move allows the heavy equipment maker to furlough the entire work force for a time while remaining in operation.

United Auto Workers Local 2096 acting president John Bogucki said the plant will shut down for the week of March 23 and then again for the week of April 13.

Workers are also being made to take their two-week paid vacation time in July. Bogucki said normally they choose what weeks to take off.

Caterpillar spokesman Jim Dugan said the company has announced a wide range of actions in the last couple of months, such as laying off 20,000 workers, to respond to declining profits. He said there are options which different plants can take to help cut costs.