Contract Settled, But Problems Persist at Goodyear’s Slovenia Tyre Plant

ICEM InBrief, September 24, 2007

ICEM affiliate Chemical, Non-Metallic, and Rubber Workers’ Union (KNG) of Slovenia and the Sava management of Goodyear Tire and Rubber Co. at Kranj came to wage terms at a tyre factory this summer, but the new contract still needs attention. At issue is how management is – or rather, is not – implementing language recently inserted into the collective agreement.

In addition to winning Chemical, Non-Metallic, and Rubber Workers' Union (KNG) of Slovenia and the Sava management of Goodyear Tire and Rubber Co. at Kranj came to wage terms at a tyre factory this summer, but the new contract still needs attention. At issue is how management is – or rather, is not – implementing language recently inserted into the collective agreement. a €90-per-month increase, the 900 workers also agreed to a plan to reduce sick leave in exchange for a sizeable bonus scheme. Management has failed to adequately implement this plan, as well neglecting other aspects of the new agreement. Shop-floor leaders at the Kranj tyre and engineered products plants, Goodyear's prize operations in Eastern and Central Europe, together with and KNG's Andrej Zorko, are eager for managers to put the new collective agreement into effect.

Goodyear produces auto, truck, and bus tyres in Kranj. It makes Sava tyre brands there, as well as its trademarked Avant A3 steer-axle tyre and the Orjak 03 drive-axle tyre. In 2006, Goodyear exceeded all business targets at the Kranj plants. It also made its one millionth tyre there. Goodyear is one of Slovenia's largest exporters.

The company entered into a majority-stake joint venture with the Sava Group in 1998, which gave it 60% of the tyre-making plant and 75% of the engineered products operation. Goodyear paid US$120 million for those stakes. Previously, Continental AG of Germany held a 28% share of Sava.In 2002, Goodyear bought another 20% stake in of operations for US$38.5 million, and, two years later, the company bought up the remaining shares to give it full ownership.

Besides being affiliated to the ICEM, KNG Trade Union is a proud affiliate of the Association of Free Trade Unions (ZSSS) of Slovenia, which is currently leading an effort in the country to offset inflation with increases in salaries for all workers.