North Carolina Governor Rejects Goodyear Incentive Bill

(Akron/Tire Review) As expected, North Carolina Governor Mike Easley vetoed a bill that would have given a US$40 million incentive package to Goodyear Tire & Rubber Co.’s plant in Fayetteville, North Carolina. Easley claimed the bill “would set a dangerous precedent” by allowing companies to lay off workers even while receiving state aid.

While bill supporters said the legislation was developed to help all companies in the state, critics said the bill was created specifically to aid the Goodyear plant. The bill would have allowed Goodyear to receive state funding and incentives even if the Fayetteville plant’s work force fell to 2,000 employees. Currently, the plant employs some 2,750 workers.

“I take no joy in this action today,” Easley was quoted as saying, “I cannot, in good conscience, pay $40 million of taxpayers’ money to a company to lay off 700 workers. It makes no sense.” The vetoed bill will be returned to the state legislature, which will consider whether to override the veto.