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Goodyear workers strike at 16 plants

The company says it's prepared to keep its plants open as Goodyear and steelworkers fail to agree.

By ASSOCIATED PRESS
Published October 6, 2006

AKRON, Ohio - Workers at 16 Goodyear Tire & Rubber Co. plants in 10 states and Canada went on strike Thursday after the world's third-largest tiremaker and the steelworkers union failed to agree on a new labor contract.

The union said the company's latest proposal would have included two plant closings.

"The company left us with no option," said Ron Hoover, executive vice president of the United Steelworkers of America, which represents the Goodyear workers. "We cannot allow additional plant closures after the sacrifices we made three years ago to help this company survive."

The old contract expired July 22 and both sides agreed to an indefinite day-to-day extension. The steelworkers issued a 72-hour notice Monday and said they would terminate the contract at midday Thursday if an agreement wasn't reached.

The company said it was prepared to keep its plants open and take care of its customers, but did not immediately say how it planned to do that.

Goodyear ranks No. 3 in the world in tire sales, based on revenues, behind top-ranked Bridgestone and No. 2 Michelin, according to the trade publication Tire Business.

Goodyear spokesman Ed Markey declined to comment on whether the company's offer involved plant closings.

"Our final offer to the union included a plan to secure retiree medical benefits and provide job security and investment guarantees for USW plants," Markey said. "The union rejected a comprehensive set of proposals that mirror the other industry agreements."

The union said it represents 15,000 employees at 12 Goodyear plants in the United States and four plants in Ontario. By the company's count, the U.S. plants have about 12,600 employees represented by the Steelworkers.

In Akron, where the 108-year-old company is based, workers at Goodyear's research center streamed out of the building at 1 p.m. and joined union members holding signs on the picket line.

About 20 pickets showed up outside Goodyear's sprawling headquarters carrying placards that accused Goodyear Tire & Rubber of unfair labor practices."

Within minutes, scores more arrived to join the picket line, where people chanted. Goodyear office workers coming out at lunch time walked past the pickets without stopping and motorists honked horns as they passed.

The company's most recent offer included wage cuts and a two-year freeze on pensions. The union also was unhappy with the health care offer for workers and future retirees.

Without giving details, Goodyear said it believes its final offer protected jobs and secured pensions. The union failed to agree to terms found in Steelworkers contracts with other tiremakers that the company believes are necessary to survive in the global economy, the company said.

"We simply cannot accept a contract that knowingly creates a competitive disadvantage vs. our foreign-owned competition and increases our cost disadvantage vs. imports," said Jim Allen, Goodyear's chief negotiator.

Goodyear shares fell 5 cents to close at $14.24 on the New York Stock Exchange. The 52-week range has been between $9.75 and $19.31.

[Last modified October 5, 2006, 22:59:16]