Caterpillar workers reach contract deal at deadline, averting possible strike

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A tentative agreement was reached on a new contract with the union representing workers at four Caterpillar facilities.

The deal with the world's largest construction equipment maker over wage increases and other issues, possibly averted a strike.

The current six-year labor contract ended March 1.

Workers had threatened a strike for wage increases, improved safety measures and better healthcare benefits.

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Caterpillar Inc. excavators are displayed for sale at the Whayne Supply Co. dealership in Louisville, Kentucky. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)

"Members at four locals in Illinois and Pennsylvania will review the tentative agreement and vote at upcoming ratification meetings," the United Auto Workers (UAW) said in a statement, without giving any other details.

FOX Business has reached out to Caterpillar for comment.

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The contract covers roughly 7,000 union employees represented by UAW at three manufacturing plants in central Illinois and a parts and distribution center in York, Pennsylvania.

The Caterpillar logo is seen on a tractor in Gilbert, Arizona. (REUTERS/Joshua Lott  / Reuters Photos)

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The union workers at the four Caterpillar facilities voted almost unanimously in January to authorize a strike, according to one local union's Facebook page.

CAT has more than 100,000 employees worldwide. 

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The last strike at the company in the U.S. was in May 2012.

Reuters contributed to this report.

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