Goodyear and Steelworkers Return to the Table

Goodyear and the United Steelworkers will return to the negotiating table in Cincinnati today, both sides confirmed over the weekend. It will mark the first formal talks between the two sides since USW workers hit the picket line on 5 October at 16 Goodyear plants in North America. Last week, Goodyear published information on its most current offer to the Steelworkers, and indicated that it was ready to get back to negotiating. While acknowledging the tyremaker’s move back to formal talks, the USW, however, did not immediately commit to returning to the bargaining table until Saturday.

Analysts reported that the discussions will likely centre around Goodyear’s plans to close its Tyler, Texas plant and proposed modifications to healthcare obligations. “While it is imperative for Goodyear to make progress in lowering its fixed cost structure, we believe the two parties remain far apart. Goodyear has said that the strike costs between $30 million to $35 million of EBIT per week,” Deutsche Bank analysts commented.

The USW said it remains committed to refusing any Goodyear move to close plants or underfund retiree medical benefits. Goodyear, though, said it needs a more competitive labour deal and to reduce costs.