Michelin, Union Agree to Extensions; No Progress Elsewhere

(Akron/Tire Review) The United Steelworkers’ (USW) master contracts with Michelin North America, Goodyear and Bridgestone/Firestone expired Sunday at midnight without incident and without a walkout by union workers. But twice over the weekend the union and Michelin agreed to extensions of their contract – one 24-hour extension on Saturday and a 48-hour extension on Sunday. The contract, which covers Michelin’s unionized plants in Tuscaloosa and Opelika, Ala., and Fort Wayne, Ind., is now scheduled to end at midnight on July 25.

Michelin was tagged by the union as its “target company” for a pattern agreement. While extensions are usually take as a sign that talks are progressing and a settlement may be imminent, some news reports indicate that Michelin and the USW remain far apart. The USW issued a “Solidarity Alert” on July 22 stating that Michelin’s “latest offer retained all the major cuts which had been part of their first offer. They are still demanding enormous reductions to our pay levels and benefit programs. The distance between their position and ours is great and the time is very short before tonight’s contract deadline.”

USW locals at the three plants have approved going on strike. Meanwhile, Goodyear and the USW continue to work day-to-day off their now expired contract. Both sides are continuing to negotiate, but a final agreement will be contingent on the outcome of the Michelin/USW talks.

Talks between Bridgestone/Firestone and the USW are still in recess after the two sides failed last week to agree to a day-to-day contract extension.

Reports from the USW indicate that the tiremakers are seeking extensive wage and benefit reductions, work rule changes and greater flexibility in plant operations, and cuts to retiree pensions and benefits.