Goodyear Announces Changes to US Employee Benefits

oodyear has announced that it is anticipating that the company’s OPEB/pension costs will be reduced by US$80-90 million in 2007 and $100-110 million in 2008 following making changes to the benefits the company’s salaried staff are entitled to.

The changes, to be introduced over a two-year period, include a freeze in pensions for US salaried employees next year plus increased healthcare costs for current and retired employees. The healthcare changes, which include making new employees ineligible for the company’s Medicare supplement plan, affect about 14,000 non-union US employees and 17,000 retirees, while pension freezes will only affect those still in employment.

According to Kathleen Geier, Goodyear’s senior vice-president of human resources, “These changes allow us to continue to provide the kind of compensation packages that are competitive and will attract and retain talented associates.”

“The changes that we’ve made were only made after careful consideration of alternatives, recognising that there will be varying levels of personal impact depending on the circumstances of each associate and retiree,” she added.