Goodyear to Close Headquarters Medical Clinic

Bad news is familiar territory for tyre industry workers in the US these days, and, keeping true to this pattern, at the start of October Goodyear employees received a cheer letter outlining the closure of the company’s medical centre at its corporate headquarters in Akron, Ohio. The centre will close its doors for the last time late in the year.

The Goodyear Family Medical Center had been providing primary-care services to employees and retirees at the site since 1989, with workers and retirees paying lower co-payments by using the practice. However Goodyear has eradicated liabilities for United Steelworkers retiree healthcare benefits from its balance sheet by fully funding a $1 billion Voluntary Employees’ Beneficiary Association (VEBA) trust to cover retirees’ healthcare. Once the VEBA trust takes effect, accounting rules prohibit covered retirees from using the clinic, because the company can no longer contribute toward their healthcare, spokesman Keith Price said.

In a letter to employees and retirees, Goodyear indicated that USW retirees ”make up a significant portion” of patients who use the onsite medical practice and pharmacy. ”When you look at the active employees who use that as their doctor’s office or their pharmacy, the volume of business from actives isn’t enough to make it viable for the operation to continue,” Price commented.