8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

September 30, 2008

(Date of report)

CARACO PHARMACEUTICAL LABORATORIES, LTD.

(Exact name of registrant as specified in its charter)

Michigan	0-24676	38-2505723
(State or other jurisdiction of incorporation)	(Commission file number)	(I.R.S. employer identification no.)

1150 Elijah McCoy Drive, Detroit, Michigan 48202

(Address of principal executive offices)

(313) 871-8400

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 140.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events

On September 30, 2008, a new labor agreement was executed by Caraco and Local 3, Service Employees International Union, CTW (the “Agreement”). This Agreement, which covers all full and regular part-time packing equipment operators and production equipment operators at all of Caraco’s facilities, is effective for the period September 22, 2008 through September 21, 2012. The Agreement covers approximately 400 of Caraco’s employees out of a total of approximately 600 full time and contract employees. The Agreement contains provisions and conditions that are customary in collective bargaining agreements of this type, including, among other things, wages, hours and work schedules, management rights, seniority, termination and benefits provisions, vacations and holidays, and health and safety. The benefits package remains substantially the same as the previous labor agreement, and wages have generally been increased by approximately 4.0% above current rates. Wage increases of 35 cents per year will occur thereafter on April 1, 2009, 2010, 2011 and 2012. A press release announcing the Agreement is attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits

c) Exhibits.

Exhibit No. Description

99.1    Press release dated October 2, 2008 announcing the labor agreement between Caraco and Local 3, Service Employees International Union, CTW.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CARACO PHARMACEUTICAL LABORATORIES, LTD.

Date: October 2, 2008 By: /s/ Daniel H. Movens
Daniel H. Movens
Chief Executive Officer

Exhibit Index

99.1    Press release dated October 2, 2008 announcing the labor agreement between Caraco and Local 3, Service Employees International Union, CTW.

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EX-99.1

EXHIBIT 99.1

Contacts:

Caraco Pharmaceutical - Daniel Movens: (313) 871-8400

Caraco Pharmaceutical - Thomas Versosky: (313) 556-4150

FOR IMMEDIATE RELEASE

Caraco Pharmaceutical Laboratories, Ltd. Reaches Agreement with Labor Union
DETROIT, Michigan, October 2, 2008 -- Caraco Pharmaceutical Laboratories, Ltd. (Amex: CPD) announced today that members of the Local 3, Service Employees International Union, CTW, have ratified a new labor agreement covering approximately 400 production and packaging employees at all of Caraco’s facilities. The new four year agreement will be effective through September 21, 2012. It replaces the agreement originally set to expire September 12, 2008.

“We are pleased that the members of the Local 3, Service Employees International Union, CTW, have ratified this agreement as our employees are extremely important to Caraco’s strategy and continued growth,” said Daniel H. Movens, Caraco's Chief Executive Officer.

This press release should be read in conjunction with our Form 8-K, which provides more detailed information on the labor agreement.

Detroit-based Caraco Pharmaceutical Laboratories, Ltd., develops, manufactures, markets and distributes generic and private-label pharmaceuticals to the nation's largest wholesalers, distributors, drugstore chains and managed care providers.

Safe Harbor: This news release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are contained in the Corporation's filings with the Securities and Exchange Commission, including Item 1A to the Corporation’s annual report on Form 10-K, and include, but are not limited to: information of a preliminary nature that may be subject to adjustment, potentially not obtaining or delay in obtaining FDA approval for new products, governmental restrictions on the sale of certain products, development by competitors of new or superior products or less expensive products or new technology for the production of products, the entry into the market of new competitors, market and customer acceptance and demand for new pharmaceutical products, availability of raw materials, timing and success of product development and launches, dependence on few products generating majority of sales, product liability claims for which the Company may be inadequately insured, and other risks identified in this report and from time to time in our periodic reports and registration statements. These forward-looking statements represent our judgment as of the date of this report. We disclaim, however, any intent or obligation to update our forward-looking statements.

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