Goodyear “Wants Dramatic Changes” – USW

According to an article in the Akron Beacon Journal, Goodyear Tire & Rubber Co. is seeking dramatic changes in wages, job classification and benefits for thousands of union workers to save millions of dollars in North America, the United Steelworkers of America says. The tyre manufacturer and the USW are negotiating a new contract in Cincinnati, with the current three-year agreement expiring Saturday.
The two sides remain far apart, says the union, which claims that Goodyear is seeking a contract that could slash wages by more than 40 per cent for thousands of workers.

Goodyear declined to comment on the Steelworkers’ statements beyond referring to a communication sent out Friday to employees from Jon Rich, president of its North America Tire division. In it, he says the company needs a lower cost structure in North America; it needs the highest productivity in the world; and Goodyear needs to change future legacy liabilities for pensions and health care that are uncompetitive and unpredictable.

Despite the distance between the manufacturer and union, it is likely that the two sides will agree to extend the current contract on a day-to-day basis, the union said. There have been no significant agreements on contractual issues since negotiations with Goodyear began last month, the USW added.

The union said it is concentrating on obtaining a master contract with Michelin/BFGoodrich that will serve as a pattern for contracts with Goodyear and also Bridgestone Firestone Inc.; the BFGoodrich and Bridgestone contracts also expire Saturday.
The union said it is seeking to reduce insurance costs for its estimated 13,000 members at Goodyear plants, improve pensions, add general wage increases plus cost-of-living adjustments, and improve job security language for union plants.

While the Steelworkers have selected Michelin/BFGoodrich as its target for pattern bargaining, “each tyre maker has issues and concerns that are unique to itself and a ‘template’ agreement should not be mistaken for a ‘one-size-fits-all’ solution,” Rich wrote on the website.

Goodyear stock closed down 8 cents to $9.91 on Monday. The company’s shares are down 43 percent for the year.