The announcement was made on Friday and goes into effect on June 24.

The layoffs, according to local outlet the Business Journal, were initially announced in March and slated for this month but were expected at first to be temporary.

Union workers approved a new six-year labor concessions contract last week, closing the books on more than two months of negotiations between Cat and the United Steelworkers Local 1343.

In addition to the long-term furloughs, the OEM also said it would put two one-week work stoppages into place for nearly all of its staff, including management and support personnel.

“We know this is difficult for our employees and their families, and the company will do what it can to ensure impacted employees have support during this time.

“Ultimately, with lower orders from mining customers, we must take steps to bring production in line with demand.”

The USW’s contract includes recall rights for up to two years following layoff, union subdistrict director Ross Winklbauer told the Journal, and new hires would receive market-based wages.

“If the business turns around, those people would get called back before [Caterpillar] could hire anybody,” Winklbauer said.

“I’m hoping that these layoffs are temporary and that now that Caterpillar has a contract that they can take it back to their customers or potential customers and let them know [the labor issue is settled] and see if we can get some orders there.”

Caterpillar had announced plans to lay off up to 40% of its production workers prior to beginning talks with the union.