Goodyear Offers Incentives to Slash Workforce

Goodyear is offering union employees retirement incentives of as much as US$40,000 in an attempt to cut their US workforce by 400 jobs. These incentives, or buyouts, are being offered at four of the company’s union plants as part of the new three-year contract ratified between Goodyear and the United Steelworkers of America.

The incentives, which are intended to help Goodyear reduce spending and compete against competitors with lower labour costs, will be offered to workers in February. Employees who accept the offer will be entitled to a once-off cash payment equal to US$2,000 for each year the have been employed by Goodyear, up to a maximum of US40,000. All employees taking up the offer will receive at least US$8,000, and will be eligible for the healthcare benefits given to retirees.