Yokohama Ratifies New Labour Agreement

Local union officials at Yokohama Tire Corp’s Salem plant have agreed to a new labour agreement, guaranteeing job security for more than two years. Mike Amos, president of Local 1023 of United Steelworkers of America (USWA), told local newspapers that members voted by a three to one majority to ratify the collective bargaining agreement. He said about 80 per cent of approximately 670 members voted.

Mr Amos, who has worked at the Salem plant for nearly 28 years, said he has been involved in three contract negotiations and thinks they worked out a “decent deal” with company officials. “I think all parties involved were happy with the outcome,” he said. “And I think we got the best contract in the entire tyre industry.”

“We at Yokohama Tire Corporation are pleased with the resolution and that we could resolve our agreement in an amicable manner,” Steve Kessing, vice president of administration for Yokohama, said in a statement.
Yokohama also agreed to add $3 per pension for each year of a union member’s service, Mr Amos said.

Mr Amos explained that the union did not think Yokohama should bear the full burden of steadily increasing health care costs. Ultimately, national lawmakers must do something to address these costs, he said, noting that neither employees nor employers can afford the tab.

The new contract expires 15 April 2007, and replaces the former contract, which expired in June 2003 which had been extended by agreement. Mr Amos said, barring an act of God, the workers will keep their jobs at least until the contract expires in 2007.

Yokohama produces high-performance passenger and light truck tyres at its Salem plant. The most recent figures suggest that the plant employs 850 workers.