September 19, 2009
Pittsburgh – The United Steelworkers (USW) today announced that a new four-year Agreement covering some 10,300 USW members at seven Goodyear Tire and Rubber Company plants has been ratified by secret ballot rank & file referendum vote concluded last night.
The voting took place at the various plant locations after the membership had an opportunity to review a printed contract summary and attend informational meetings.
“The contract was approved by an overwhelming majority of the membership and a majority of the plants,” said Kevin Johnsen, USW contract coordinator during negotiations.
The previous labor agreement expired July 18 and was twice extended before the settlement was reached. The new agreement takes effect Sept. 21.
The union’s priorities were job and plant security and continuing good, affordable health care for its members.
“During this difficult economic period, this contract gives our members job security for the next four years,” said USW International President Leo W. Gerard.
The agreement protects six out of the seven plants from closure during the term of the agreement and provides for minimum staffing levels. It also provides for a commitment by Goodyear to invest $600 million in capital expenditures in the plants, keeping them up to date and globally competitive.
The protected plants include: Akron, Ohio; Gadsden, Ala.; Buffalo, N.Y.; Topeka, Kan.; Danville, Va., and Fayetteville, N.C.
During the recent market downturn, the plant in Union City, Tenn., had been severely impacted by the deluge of cheap tires from China. A local agreement negotiated in April provided for up to 600 workers to receive buy-outs.
New Protection for U.S. Workers
USW International President Tom Conway, chairman of the Goodyear bargaining committee, helped lead the union’s successful fight to protect USW tire jobs by preparing the Section 421 case against the imported tires and providing convincing testimony on numerous occasions to support the case.
“There never was any doubt that the Chinese tire imports have injured domestic production workers,” Conway said. “We’ve had six tire plants employing 7,000 workers shut down because of the tire import surge from China.”
President Obama stood up for American workers and American manufacturing last week when he imposed tariffs on Chinese consumer tires for a period of three years. The action is fully consistent with our country’s WTO obligations during import surges that threaten an industry.
“We are optimistic that the step taken by the President will provide real, effective relief,” Conway said.
The Union City plant is one of the plants that stand to benefit from President Obama’s action if the market returns to previous demand.
The Goodyear plant in Tyler, Texas is one of the plants closed more than a year ago, a victim of the cheap, imported tires from China.
Monday, September 21, 2009
Steelworkers Ratify Goodyear Agreement
Thursday, September 10, 2009
More on tentative Goodyear-USW contract
MTD - September 8, 2009
The United Steelworkers (USW) union has released more details about the tentative master contract with Goodyear Tire & Rubber Co. that is expected to be ratified by Sept. 18. The agreement covers 10,300 union members at seven Goodyear plants.
"Our priorities were to protect our plants and our jobs while maintaining good, affordable health care in a difficult economic climate," says USW International Vice President Tom Conway.
The agreement, according to the USW, requires Goodyear to invest at least $600 million in capital expenditures to maintain its factories "with state-of-the-art equipment." The agreement also protects six plants against closure: Akron, Ohio; Gadsden, Ala.; Buffalo, N.Y.; Topeka, Kan.; Danville, Va.; and Fayetteville, N.C.
Other provisions include:
* "separation allowance buyouts" for employees at Goodyear's Buffalo factory "in the event the company decides to no longer produce truck tires" there.
* "wage and benefit improvements" for employees hired after Oct. 1, 2006, including two 50-cents-an-hour increases and additional vacation time designed "to bring them closer to the levels of senior employees. They also will be eligible to receive accident and sickness benefits, vision care (and) improved life insurance coverage."
* multiplier increases for senior employees who retire during the duration of the new agreement.
The contract must be approved "by a majority of the membership and a majority of the plants," according to USW officials.
Wednesday, September 2, 2009
Goodyear plans to appeal against job-cutting plan rejection
French Business Digest - August 31, 2009
US tyre maker Goodyear (NYSE:GT) announced that it may appeal against the court ruling which blocked its new restructuring plan for the site of Amiens Nord, northern France.
The plan, recently suspended by the French court of Nanterre, included 820 job cuts out of a total 1,400 staff.
Trade union CGT had referred the job-trimming decision to the court, which said that the plan was incomplete, particularly regarding the future of the production of agricultural tyres.
In November 2008, the court rejected an earlier restructuring plan by Goodyear, which envisaged 402 job cuts. The group's management had appealed against the ruling and was granted the possibility to present a new plan.
Trade unions are urging the management to open talks on the industrial future of the facility.
Sunday, August 30, 2009
Goodyear, Steelworkers reach deal on contract
Associated Press, August 30, 2009
The union and company said the agreement was reached about three hours before a midnight Saturday deadline neared for the expiration of the old contract, which had been extended twice.
Rank-and-file members will be briefed on the deal and take a ratification vote.
Wayne Ranick, a spokesman with the union headquarters in
The talks, which began in June with the national recession as a backdrop, covered about 10,300 Steelworkers at seven Goodyear plants in the
The Steelworkers had made job security their top priority in talks covering workers in
The goals of the Akron-based company were improved productivity and flexibility.
Tuesday, August 25, 2009
Goodyear, USW continue to talk
Gadsden Times, August 24, 2009
Workers at two BFGoodrich plants have ratified a new three-year contract as the United Steelworkers continue contract talks with Goodyear Tire & Rubber Co. and Bridgestone/Firestone.
Members of the United Steelworkers Local 351 in Tuscaloosa and the local in Fort Wayne, Ind., approved the contract by a 5-to-1 margin, according to Jimmy Price, president of Local 351. The contract covers about 2,500 workers at the plants.
Price, who was on the union's bargaining committee, said he felt BFGoodrich was "very responsible to give a fair contract."
A key concern for the union was job security. BFGoodrich has moved to close some of its plants, including its Opelika tire plant, which will shut down permanently in October.
That plant had about 1,000 workers when BFGoodrich announced its closing this year.
Bren Riley, vice president of USW Local 12, which represents workers at the Gadsden Goodyear plant, said the agreement reached between the USW and BFGoodrich could have an impact on the Goodyear negotiations going on in Cincinnati.
After two extensions, the Goodyear contract will expire at 10:59 p.m. Saturday.
However, Ed Markey, Goodyear's vice president for public relations and communications in North America, said the agreement will not affect the company's negotiations.
"Our discussions continue
to proceed in Cincinnati, both sides being very professional about it. We remain optimistic that we'll reach an agreement," Markey said.
A spokesman for Bridgestone/Firestone told the Akron Beacon Journal the BFGoodrich agreement would not impact its talks because each company is unique.
The USW talks were going on with the three companies in three different locations, and Riley said the union traditionally has used an agreement reached with one company as a "pattern" for agreements with other tire makers.
This year, Riley said, union officials chose to have talks with all companies at the same time, rather than selecting a "target company" to negotiate with. When one got close to an agreement, the union then would put its resources into those negotiations.
"Then they would come together and talk about that agreement and vote whether to accept that as pattern-setting or not," Riley said.
He said the BFGoodrich agreement could be used as a pattern, but he did not know that for sure.
Riley didn't have any specific information about the BFGoodrich agreement.
"I don't know what they've got," he said.
The USW talks with Goodyear began June 8. The current contract ended July 18, but the company and union agreed to a 28-day extension and then a second, 14-day extension that ends Saturday.
A strike in 2006 lasted for three months.
The Goodyear-USW contract covers about 10,300 Goodyear associates in the U.S., including plants in Gadsden; Akron, Ohio; Buffalo, N.Y.; Danville, Va.; Fayetteville, N.C.; Topeka, Kan.; and Union City, Tenn.
Thursday, August 13, 2009
Goodyear, union agree to extension
The contract had been set to expire at 10:59 p.m. CDT Saturday. With the extension, the contract now will expire at 10:59 p.m. CDT on Aug. 29.
The talks continue in Cincinnati.
“We have made progress on some of the significant issues,” said Jim Allen, Goodyear’s chief negotiator. “We recognize that we need the additional time to work through the remaining issues, and we remain confident that a satisfactory agreement will be reached.”
A statement by the union on its Web site said “sufficient movement over the past two weeks prompted both sides to agree to the extension, as an agreement could not be reached by the August 15, 2009, deadline.”
Contract talks began June 8.
The contract covers approximately 10,300 Goodyear associates in the U.S., including plants in Gadsden; Akron, Ohio; Buffalo, N.Y.; Danville, Va.; Fayetteville, N.C.; Topeka, Kan.; and Union City, Tenn.
United Steelworkers Local 12 Vice President Bren Riley said Wednesday afternoon he was informed of the extension by USW Local 12 President David Hayes, who is participating in the contract talks.
Riley said he was encouraged by the extension and said it shows “both sides think there is an agreement out there.”
Goodyear has said key issues in the new contract are productivity and flexibility and pensions and benefit issues.
Hayes said in April that key issues for the union would be job security, improving wages and benefits and improving the wages of new hires at the plant.
During the last contract talks in 2006, the contract was scheduled to end in July but was extended on a day-to-day basis. Talks continued until October, when the union went out on strike for almost three months before an agreement was reached in late December.
According to the USW Web site concerning the contract talks, votes have been completed at all locals with 98.5 percent of the membership authorizing a strike if necessary.
Friday, July 17, 2009
Goodyear To Close Philippines Tire Plant, To Cut 500 Jobs - Update
RTT News, July 17, 2009
Friday, Goodyear Tire & Rubber Co. (GT: News ) said it will close its tire plant in the Philippines, citing higher costs, which will resulting in a reduction of approximately 500 . of the company's 600 associates in the country. The company also said it expects to record a closure-related charge in the third quarter. The action, as part of a strategy to address uncompetitive manufacturing capacity globally, is expected to be completed by the end of the third quarter.
The company noted that its sales and marketing operations in the country are not affected.
The Akron, Ohio-based tire manufacturer said that the closure of the plant in Las Pinas will result in the reduction of nearly two million units of annual production capacity. Goodyear's strategy is to remove 15 million to 25 million units of capacity over the next two years. Production will be transferred to lower-cost plants in the company's Asia-Pacific Region. In Philippines, Goodyear has had a presence since 1919, and the Las Pinas plant was opened in 1956.
In addition, the company said it plans to record approximately $20 million in charges associated with the closure in the third quarter of 2009, principally for non-cash asset write offs.
Pierre Cohade, president of Goodyear's Asia-Pacific Region, stated, "Due to high costs compared to other plants in the region, tires produced in the Las Pinas plant are not competitive in the marketplace. Goodyear is committed to its business in the Philippines as well as continuous product innovation, and intends to maintain its market leadership through aggressive marketing, excellent customer service and superior products. This action will, in no way, disrupt our service to wholesale, retail and original equipment customers."
In late May, Goodyear had said that it would discontinue consumer tire production at a plant in Amiens, France, which would result in reducing about 820 jobs, as part of its strategy to reduce high-cost manufacturing capacity. The closure was due to the plant's uncompetitive costs. The production cease would result in reduction of about 6 million units of production.
While, in June, Goodyear announced that it would move its consumer tire plant in Union City, from a continuous operating schedule to a five-day, three-shift operation on July 6. The Union City plant can produce about 12 million consumer tires a year for the original equipment and replacement markets and currently employs about 2,300 associates.
Wednesday, July 15, 2009
Goodyear, Steelworkers extend contract 4 weeks
WRAL.COM July 14, 2009
AKRON, Ohio — Goodyear Tire & Rubber Co. and the United Steelworkers of America have extended their national contract four weeks until Aug. 15, both sides said Tuesday.
The three-year contract covering about 10,300 Steelworkers at seven Goodyear plants in the U.S. had been scheduled to expire Saturday. The extension was announced by the company in an e-mail statement. The union's contract Web site also detailed the move.
The Steelworkers said job security would overshadow other issues in contract talks covering workers in Akron; Buffalo, N.Y.; Danville, Va.; Fayetteville, N.C.; Gadsden, Ala.; Topeka, Kan., and Union City, Tenn.
All terms of the current agreement will remain in force with the extension, the union said.
Contract talks, which began last month, continue in Cincinnati.
Progress "remains slow," according to the union's bargaining committee's Web site. Still, the union "believes we can reach a new labor agreement before Aug. 15, 2009 that is fair and equitable to all of our members," the Web site said.
Goodyear said it was confident an agreement could be reached, but didn't specify when.
"We remain confident that we will reach an agreement that is acceptable to both sides," Jim Allen, Goodyear's chief negotiator, said in a statement released by the Akron-based company.
Tuesday, June 23, 2009
Goodyear, Steelworkers Bargain During Tough Economy
The Buffalo News, June 23, 2009
Contract negotiations will affect local tire plant in Tonawanda, which has over 900 hourly workers
Goodyear Tire & Rubber and the United Steelworkers are negotiating a new contract — talks that will have a local impact.
The Goodyear Dunlop Tires North America plant on Sheridan Drive in the Town of Tonawanda is one of seven U. S. facilities covered by the bargaining, with a combined total of 10,300 workers. The current three-year labor agreement expires July 18.
The local plant makes tires for passenger cars, commercial trucks and motorcycles. It has already has felt the effects of the economic downturn and the company’s push to reduce costs, cutting almost 150 jobs late last year through buyouts and layoffs.
The existing national agreement did not come about easily. In 2006, the Steelworkers went on strike for three months before approving a deal. This time, the two sides are bargaining amid a recession, with auto sales stuck in a slump.
Wayne Ranick, a spokesman for the Pittsburgh-based Steelworkers, said he believes the talks will go more smoothly this time.
A major point of contention, involving retiree health care, was resolved in the last round of talks, he said, and both sides are cognizant of the current economic climate.
Ranick said the union’s priorities are jobs and keeping the plants operating, along with ensuring adequate capital investment in the facilities. “That sort of all goes together,” he said.
Goodyear says it has to control costs so that the company remains competitive in a global marketplace. The tire maker identifies four key issues in the talks: productivity, flexibility, pensions and benefits.
By flexibility, the company says it means its plants “must have workers in the right place, at the right time, producing the right products at the right cost.”
Goodyear in December 2008 froze its defined pension benefit plans for its U. S. salaried workers, but not its hourly workers. It says its pension plans are “significantly underfunded,” following declines in interest rates and pension asset values.
In remarks to the bargaining teams at the start of talks in Cincinnati, Goodyear executive Rich Kramer cited the economic climate and the fact that the company’s North American business lost $189 million in the first quarter as major challenges.
Kramer, who is chief operating officer and president of North American Tire, said Goodyear’s goal is “profitable growth by building tires in North America.” The company will never be the low-cost manufacturer of tires, he said, so it must find ways to improve efficiency.
The Tonawanda tire plant has 948 hourly workers represented by the Steelworkers, along with 152 salaried workers, said Diane Zwirecki, a spokeswoman at the plant. An additional 40 salaried employees work at offices in Amherst, for a combined work force of 1,140.
The manufacturing plant produces an average of 5,500 motorcycle tires, 4,200 passenger tires and 2,000 truck tires per day, Zwirecki said.
Friday, June 12, 2009
USW at Goodyear Tire & Rubber Co.'s Akron Technical Center Approves Buyouts
Cleveland Ohio Business News, June 11, 2009
Members of the United Steelworkers union who make racing tires at Goodyear Tire & Rubber Co.'s Akron Technical Center have agreed to buyouts for 120 workers there, USW Local 2L reported Wednesday.
The local's 440 members voted on the new staffing level. The vote also affirmed an agreement with the tire maker to preserve 256 USW jobs at the tech center for 2½ more years.
"We will keep the manufacturing staff level at that level through 2012," Goodyear spokesman Ed Markey said.
Union workers who accept the buyout would receive $2,000 for every year of service, to a maximum of $40,000. The local said about 130 of the members eligible for buyouts are of retirement age. If fewer than 120 union members accept the buyout, Goodyear can lay off enough workers to make up the difference, Markey said. He said the buyouts have no effect on engineering and other salaried employees at the tech center.
Some union personnel argued that approval of the agreement could open the door for the company to move its rubber-production operations to Buffalo, N.Y. The company declined to comment on such a possibility.
Wednesday, June 10, 2009
'Typical' Start to Goodyear Contract Talks
Akron Beacon Journal, June 9, 2009
Goodyear wants to remain a viable company.
The Steelworkers want to make sure their members have jobs.
That basically sums up the opening presentations Monday in Cincinnati between Goodyear Tire & Rubber Co. and the United Steelworkers as contract negotiations began in earnest, according to a union official. The current three-year contract expires July 18.
Rich Kramer, Goodyear's new chief operating officer and president of the North American Tire division, spoke to the group, as did Tom Conway, who is leading the negotiations for the Steelworkers.
Goodyear released a short excerpt from Kramer's presentation.
"I believe our new agreement will be a reflection of our shared interests and our mutual desire to make Goodyear the best-performing tire company in North America and the model for success in these uncertain times. . .a model others will look to as an example of how to win with manufacturing right here at home," Kramer said.
"Our future together won't look like the past. Our present doesn't even look like the past. But our vision should be the same. The goal of this negotiation is to reach an agreement that is consistent with the new realities of our industry and outlines the actions that we -- Goodyear and the USW under one banner -- must take to win," he said.
"At this point, we're looking for job security," said Kevin Johnsen, the union's Goodyear contract negotiator.
Johnsen said it was a "typical" opening day for master contract talks that had both sides exchanging comprehensive proposals and meeting face to face for several hours.
The next face-to-face meeting will take place in a number of days, once each side has had enough time to review the proposals, Johnsen said.
The Steelworkers have about 10,300 union members working at seven U.S. plants, including about 440 members in Akron.
The union went on strike in the fall of 2006 for 12 weeks. The strike ended in late December after the Akron tire maker and union agreed to create an independent health-care trust, called a VEBA, for union retirees.
Monday, June 8, 2009
USW Talks Begin
Rubber & Plastics News, June 1, 2009
Initial bargaining sessions for the 2009 tire industry master contracts are set to begin this week.
United Steelworkers negotiating committees will start talks June 1 in Cincinnati with representatives of Goodyear and in Lexington, Ky., with Michelin North America Inc.'s BFGoodrich unit. A week later on June 8, contract discussions will begin in Louisville, Ky., between the USW and Bridgestone Americas.
The current BFG and Bridgestone contracts, covering about 3,200 and 4,500 workers, respectively, expire July 18. The Goodyear pact, covering about 11,500 workers, lapses July 22.
The Pittsburgh-based USW said it will emphasize job and plant security, investments at unionized plants, retiree benefits, tiered wage scales and health safety in this year's negotiations. Michelin announced in April it will close sometime this fall its Opelika, Ala., tire plant, one of three sites in the BFG chain where the USW represents the hourly workers.
Thursday, June 4, 2009
Goodyear Workers Block French Operations Due to Planned Lay-Offs
Global Insight, June 3, 2009
Goodyear workers in
Significance:Goodyear has already laid off 3,800 workers during the first quarter of this year and aims to reduce its built-up inventory by over $500US million during the year, on the lines of its Four-Point Cost Savings Plan aimed to achieve $2US.5 billion in gross cost savings by the end of this year. Goodyear is reportedly planning to discontinue consumer tyre production at its
Wednesday, June 3, 2009
Union-busting at Goodyear Peru
Sindicato Unico de Trabajadores de Goodyear de Peru, June 3, 2009
Even though production at the plant has held steady, since firing the 25 workers, Goodyear
The union has raised formal complaints about the dismissals to local and national authorities, but Goodyear
More Than 510 Accept Goodyear’s Buyout Offer
The Messenger, June 2, 2009
The deadline has passed and the results are in concerning the potential for a number of Goodyear-Union City associates to walk away from the plant.
According to UC Today, a weekly publication provided to Goodyear-Union City associates, 518 workers have applied for a Phase I buyout from the company.
USW Local 878 members were notified of a proposal issued by Goodyear in late April, which highlighted three potential phases of production decreases and buyouts for plant workers. After a vote by Local 878 workers, the agreement was accepted by an overwhelming 97 percent in favor of the proposal.
Since that time, Goodyear-Union City announced plans to move to an eight hours a day, five days a week traditional production schedule after the July 4 holiday shutdown. Currently, the factory operates seven days a week on a 12-hour continuous production schedule.The plant also announced it would allow the buyout of 600 associates under Phase 1 of the agreement.
Under Phase 1, associates with at least six months of service to the plant could apply for the buyout at $3,000 for each year of service with no cap.
Goodyear-Union City reported on Friday that 518 associates signed up for the Phase 1 buyout package. An additional 30 inactive associates will be included in the final number. The plant posted buyout awards throughout the factory Monday morning. Under Phase 1, associates between the ages of 53 and 55 with a minimum of 28 years of service who accept the buyout will be eligible to receive unemployment benefits until they are eligible to retire from the company.
Goodyear-Union City associates who plan to retire as a result of the buyout can schedule meetings in the human resources organization beginning June 9.
“This phase of the transition process is complete,” plant manager Todd Turner said. “Our focus now must be on implementing a new production schedule and improving our productivity to levels consistent with organizations that operate in a global environment in order to ensure Goodyear Union City’s operations remain viable.
“Making the Union City plant successful into the future will require a total team effort, driven by a willingness by all to put aside the past and operate the plant in a totally new and more productive manner going forward,” he said. “Anything less will greatly reduce our chances of success.”
Turner noted that Goodyear’s presence in Union City is valued, and the plant’s challenge is to deliver to its commitments and continue to earn the customers’ trust every day.USW Local 878 communications director Willis Hicks told The Weakley County Press that associates would leave the plant according to job classification and based on the time it takes to train replacements in various departments.
The lagging economy has taken its toll on the replacement tire industry as Goodyear plants in Topeka, Kan., and Danville, Va., have reported similar buyout agreements.
According to the WIBW-TV of Kansas, 225 jobs would be eliminated through buyouts and lay offs at the Topeka Goodyear plant. The Danville Register and Bee reported 200 buyouts were offered at the Danville Goodyear plant.
Both facilities also announced plans to move to a traditional eight hours a day, five days a week production schedule.
Tuesday, June 2, 2009
JUSTICE DEPARTMENT FILES SUIT AGAINST GOODYEAR TIRE and RUBBER CO. TO ENFORCE EMPLOYMENT RIGHTS OF U.S. ARMY RESERVIST
Justice Department Press Release, May 29, 2009
WASHINGTON - The Justice Department today filed suit in U.S. District Court in Oklahoma City against Goodyear Tire and Rubber Co. alleging it violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing promptly to reemploy Michael J. Ellis in his factory job when he returned from active military duty.
As a result of an earlier military service-related injury exacerbated by his job with Goodyear, Ellis had become unable to perform physically the functions of his job as a Roll Changer/Extruder Operator with Goodyear in May 2005. While Goodyear searched for a new position for Ellis, he was called to active duty with the U.S. Army Reserves where he served as a Major until his honorable discharge in September 2007. The Department's complaint alleges that when Ellis sought reemployment with Goodyear shortly after his honorable discharge, the company took no steps to identify the position he would have held if his employment had not been interrupted by military service. Instead, Goodyear delayed reemploying him for 51 weeks while repeatedly requesting medical documentation not required or permitted by USERRA as a prerequisite to reemployment.
"No returning service member should have to wait almost a full year for reemployment under such circumstances," said Loretta King, Acting Assistant Attorney General for the Civil Rights Division. "Such a delay clearly violates USERRA's promise of prompt reemployment."
The Labor Department's Veterans' Employment and Training Service investigated and attempted to resolve Ellis's USERRA complaint before referring it to the Justice Department for litigation.
Congress enacted USERRA in 1994 to minimize disruption in the lives of returning service members by providing for their prompt reemployment following military service. As part of the protection the statute provides, USERRA requires employers to reemploy a returning service member in the position the employee would have held had his or her employment not been interrupted by military service.
The Justice Department's Civil Rights Division has given a high priority to the enforcement of service members' rights under USERRA. This is the fourteenth USERRA suit the Division has filed this year on behalf of service members. Additional information about USERRA can be found on the Justice Department's Web sites at http://www.servicemembers.gov and http://www.usdoj.gov/crt/emp, as well as the Labor Department's Web site at http://www.dol.gov/vets/programs/userra/main.htm.
Wednesday, May 27, 2009
Goodyear to Cut 870 Jobs at French Operations-Report
Global Insight, May 26, 2009
Goodyear is planning to cut 870 jobs at its Amiens plant in France owing to the deterioration in business prospects amid the ongoing economic downturn, according to an Agence France-Presse (AFP) report. AFP said that the Goodyear management would reveal its intentions over the impending lay-offs "during the first-half of June, after the establishment of the central council from the [French government] elections in April." He added that about 100 jobs could also be cut at Goodyear's Montlucon (Allier) facility; but company officials have denied this speculation, although confirming that the negotiations are ongoing with the local worker unions at its Amiens facility.
Significance: Goodyear cut 400 jobs at its Amiens plant last year. However, the company management and trade union leaders have been in constant disagreement over the future of the plant ever since. Goodyear announced in January 2008 that its European business unit was planning to reduce tyre production at its two factories in Amiens, because their costs were not competitive. Goodyear has subsequently shifted production of some of its tyres to its other lower-cost factories in Europe and elsewhere, while some products were eliminated. Goodyear has already laid off 3,800 workers globally during the first quarter and aims to reduce its built-up inventory by over $500US million during the year, on the lines of its Four-Point Cost Savings Plan aimed to achieve $2US.5 billion gross cost savings by the end of 2009 (seeUnited States: 30 April 2009:). The job losses represent over 50% of the plant's workforce.
Thursday, May 14, 2009
Dunlop To End Final Salary Pension Scheme
Birmingham Post, May 12, 2009
Tyremaker Goodyear Dunlop UK is to begin consultations on a plan to close its final salary pension scheme.
The Birmingham-based Anglo-American company would not say yesterday whether the scheme was in deficit or by how much, but it is believed to be the latest in a growing list of businesses that are finding the cost of supporting a pension scheme based on pay and length of service excessive.
It said yesterday that it was starting talks with pension trustees, trade unions and employee representatives about the introduction of a new defined contribution (DC) pension scheme.
Unlike a final salary, or defined benefit (DB) scheme, in which the company bears the risk of ensuring that the fund has enough cash to meet its liabilities, a DC scheme transfers the investment risk to employees.
Goodyear Dunlop said the proposed new scheme would replace both the company's so-called Hybrid Scheme (which combines a normal final salary scheme with additional voluntary contributions from members) and an existing "New Hire" DC scheme.
The company calculates that about 850 employees in Birmingham and Wolverhampton are members of the hybrid scheme and 70 pay into New Hire.
"The consultation will be on the proposed replacement of the current schemes with a new enhanced defined contribution programme," the company said in a statement. Those who are paying into the DB scheme will have their accrued benefits deferred, and the company is proposing the introduction of a DC scheme for future service to add to the members' existing benefits.
Tuesday, May 12, 2009
Union City Associates Approve Goodyear Buyout
Weakley County Press, May 11, 2009
Special to The Messenger
Union workers at the Good-year-Union City plant voted overwhelmingly in favor of an agreement between the company and United Steelworkers Local 878 which proposed a “buyout” of at least 600 associates during its first phase of initiation. The agreement also states the local tire manufacturing facility would no longer be protected under Letter 53 of a master contract and may be closed.
In a letter dated April 24 to Local 878 president Harry Alford, a proposal was offered to local union associates that highlights three potential “phases” of a workforce reduction at the Union City Goodyear plant. Local 878 members cast their votes Friday and Saturday, with 94 percent voting in favor of the buyout agreement.
“This agreement was to give the Union City plant a chance to survive. They were considering closing the plant and with this agreement, if things pick up in the next two years, it will have a good chance to survive,” USW Local 878 communications director Willis Hicks said.
Hicks added the company will put out information to its associates concerning how many buyouts would be available and the number of employees who would fall into a workforce reduction.
Union City Goodyear communications manager Jimmy Cagle, who will leave Union City for the Lawton, Okla., plant next week after more than 20 years at the local plant, said, “We are pleased the membership of USW Local 878L has voted to support the tentative agreement. The change is in response to continued lower demand for consumer passenger and light truck tires and current economic conditions.”
“We will now begin work to implement the agreement and continue to drive improvement activities for our operations,” said Union City plant manager Todd Turner.
Goodyear-Union City currently employs about 2,600 team members, according to Cagle.
The terms of the proposal state under Phase 1 of the agreement that the plant has the right to make an initial ticket reduction and/or conversion to a five-day conventional schedule. Goodyear-Union City announced last week the plant plans to move its production schedule to three eight-hour shifts, five days a week — Monday through Friday — on July 6 after the July 4 holiday shutdown.
The plant issued a 60-day notice of possible intentions to move to an eight-hour conventional production schedule in February. Currently, Goodyear operates seven days a week, 24 hours a day on 12-hour shifts.
Included in Phase 1 of the agreement is the buyout of 600 Goodyear associates, including 60 technical maintenance by classification, at $3,000 per year of service with no cap. Those eligible under a Phase 1 buyout include associates with a minimum six months of service.
Under the agreement, “Employees on Occupational/Non-Occupational Leave of Absence or on layoff will be offered buyouts only in Phase 1 and only if an insufficient number of buyouts have been accepted after they have been offered to all other employees.”
Goodyear associates will have the option of accepting buyouts at $3,000 per year of service or being placed on layoff with existing rights and benefits under Phase 1, according to the agreement.
As an incentive to senior associates between the ages of 53 and 55 with at least 28 years of service as of June 1 of this year who choose the buyout during Phase 1 may elect voluntary layoff and may remain on layoff status without recall rights until they reach the necessary retirement criteria of age 55 and 30 years of service. They will then be required to retire under the terms of the Pension, Insurance and Service Award Agreements in effect at that time as highlighted in the buyout proposal.
The agreement also stipulates Phase 2 criteria in the event subsequent ticket reductions are made at the Goodyear plant prior to announced plant closure.
Under Phase 2 of the agreement, 400 buyouts would be offered at $2,000 for each year of service at the plant, with no cap.
Phase 3 of the agreement states that in the event of an announced plant closure, employees who did not leave during Phases 1 or 2 would have the option of accepting a $25,000 lump sum one-time payment or preferential hire rights, SUB and SIC pays, as well as medical and other benefits according to plant closure provisions of the Pension and Insurance Agreement.
Any associate who opts to take a layoff during Phase 2 or 3 of the agreement will be eligible to receive $250 a week for a maximum of 84 weeks. According to the agreement, buyouts will be paid as a lump sum after the associate’s exit and will be subject to federal, state or local payroll taxes including a deduction of Union dues.
A reduced demand for replacement tires coupled with declining auto sales have impacted production at several Goodyear plants during the course of the last 12 months.
In August 2008, four North American Goodyear tire plants announced reduced consumer tire production by 8 million tires last year. Goodyear-Union City was among the four plants who experienced three production shutdowns during the last quarter of 2008 as a result of a declining passenger tire market.
USW Local 831 approved a similar buyout agreement with Goodyear Tire and Rubber Co. at its plant in Danville, Va., earlier this year.
The Danville plant reduced its production schedule from a 12-hour continuous operation to an eight-hour five-day-a-week schedule in late March, according to The Danville Register & Bee. Goodyear-Danville reportedly offered 200 buy outs at $2,000 per year of service with a cap at $40,000.
Clint Smith, corporate support communications manager in Goodyear’s global communications organization in Akron, has been named to replace Cagle.
Monday, May 4, 2009
Things Dire For Workers
The Nation (Thailand), May 1, 2009
Thai Labour Federation of the Petrochemical Industry secretarygeneral Saman Pornprachatham said people working for at least three major tyre manufacturers would rally at the Labour Ministry on May 7. More than 20,000 workers in six tyremanufacturing companies had either been laid off, had their work hours cut or had not been paid their salaries, he said.
Saman said that 160 workers with tyremanufacturer Goodyear had been laid off despite the firm's executives previously agreeing to notify the labour union in advance. Workers at Siam Michelin in Samut Prakan's Samrong Tai area had also suffered a 13 per cent salary cut, while those working for Michelin in Rayong's Laem Chabang area had overdue payments, he said, adding working hours at both factories had also been cut.
"What concerns us the most is that the employers might use this as an opportunity to sack workers, especially those working for unions and joining the rally this time," he said, adding that Labour Ministry officials were not taking their problems seriously. They only sent officials to inspect the premises and wait until the problems faded away, he said.
Friday, May 1, 2009
Goodyear offering buyouts at Union City plant
The Associated Press State & Local Wire, April 30, 2009
Goodyear Tire & Rubber Co. is offering buyouts at its Union City plant to deal with the economic downturn.
According to the Union City Daily Messenger, the first phase of the buyouts has been offered to 600 workers ages 53 to 55 who would get $3,000 for each year of service with no cap.
The plant announced earlier this year that it would reduce its production schedule to an eight-hour, five-day-a-week operation. Currently, the facility operates a 12-hour continuous production schedule.
A United Steelworkers union spokesman said members would meet to discuss the proposal.
Monday, April 13, 2009
Lawton tire plant cited in worker's death
April 1, 2009
Federal investigators have issued a citation against a Goodyear tire manufacturing facility in
Forty-five-year-old Steve Mason was critically injured Sept. 20 after being caught in a tire-building machine. He died three days later at a
After an initial probe, the Occupational Safety and Health Administration did not report any violations at the plant. But the federal agency returned for a follow-up investigation on March 20 and cited the facility for not properly protecting employees from hazards related to the machine.
A spokeswoman for Goodyear says the company plans to contest the alleged violation.
Friday, April 10, 2009
THAILAND WORKERS DEMONSTRATE AGAINST SALARY CUTS AND LAY-OFFS
Thai Press Reports, April 9, 2009
About 500 workers from three companies rallied at the
The workers, from tyre makers Michelin and Goodyear and metal pipe maker Canadoil Asia, said they would continue to block the ministry until they saw Labour Minister Paitoon Kaewthong.
They vowed to stay outside the ministry every night until National Labour Day, May 1, if not satisfied with the meeting with Mr Paitoon.
The employees made an appointment to meet the minister at 5pm. They demanded Mr Paitoon summon the owners of the three companies to talk to their representatives. The employees claimed they had talked to employer representatives and could not reach an agreement.
The Michelin staff said they were angry the firm had announced it would cut the pay of production staff by 13% and the wages of administration staff by 5%.
The Canadoil Asia staff demanded their firm reinstate 583 staff and pay them their unpaid wages since Mar 16.
The 160 Goodyear Co staff were outraged for being sacked without notice.
Friday, March 27, 2009
USW sets goals for upcoming talks
Rubber & Plastics News, March 23, 2009
United Steelworkers negotiators will have familiar subjects on their minds when contract talks with the tire industry's Big Three begin later this year, but rather than making gains in those areas, the main objective will be preservation.
That won't be easy. Michelin, Bridgestone and Goodyear--plus many other tire makers--have made production and job cuts or postponed expansion projects in recent months, both in North America and globally.
And if the union is to reach its goals in a challenging economic environment, it likely will do so without its rubber industry leader. Ron Hoover, United Steelworkers executive vice president and head of the organization's Rubber/Plastics Industry Conference, plans to step down from his position on June 1.
The R/PIC represents about 45,000 workers, according to the USW. About 11,500 of those are Goodyear employees, 4,500 Bridgestone workers and 3,200 from Michelin/BFGoodrich, the union said.
Job and plant security, investments at unionized tire facilities, retiree benefits, health and safety and tiered wage scales are among the important issues the USW wants to emphasize in this year's bargaining, a union spokesman said. Most of those were at the top of the list in 2006 as well, but a highly competitive tire market made negotiations difficult.
Most notably, workers at 16 Goodyear tire and rubber product sites in
Bridgestone shut down its
Reduced demand in several segments--particularly in mass-market passenger tires--was already a problem three years ago, leading to many of those cutbacks.
Now, an overall recession makes maintenance a priority, the spokesman said.
"We want to generally protect what we have," he said. "We want to protect our staffing levels, help prevent closings and encourage investments in our plants."
Late last year, USW-represented workers at Cooper Tire & Rubber Co.'s Findlay, Ohio, and Texarkana, Ark., tire plants reached separate contract agreements with the company, securing jobs and production for the next three years. However, Cooper announced it would shut down its non-union
In addition to plant and job preservation, the USW wants to ensure that health and safety standards aren't compromised, especially as manufacturers are making efforts to cut costs, and close the gap between "old" and "new" employees the union says is becoming wider in current tiered wage systems. Earlier this year,
USW officials are unsure if
Friday, March 6, 2009
Topeka Goodyear Workers Approve Contract Provisions
WIBW.com, March 5, 2009
Some workers at Topeka's Goodyear plant will lose their jobs in order to keep the plant competitive during tough economic times.
United Steelworkers Local 307 approved revisions to their contract with Goodyear in voting that ended late Thursday. It allows for the company to buyout up to 100 workers. Information provided to union members earlier in the week said there also would be layoffs, for a total of 225 positions eliminated.
A statement from Local 307 said the current contract required Goodyear to maintain certain staffing and production levels at the
"During these discussions the Union’s primary focus was to protect each of our members and their families during these uncertain economic times, as well as the
Local 307 says the decision was "difficult" but was made to keep the plant viable and competitive until the economy improves.
In addition to the buyouts, the new agreement enhances supplemental unemployment benefits to any and all employees who may face layoff. Local 307 would not comment on any details regarding layoffs.
In a statement, Goodyear Topeka Plant Manager Tim Davis confirmed from 200 to 225 workers would be affected. The
"Goodyear is pleased the membership of USW Local 307 has voted to support the tentative agreement,"
Thursday, March 5, 2009
Goodyear layoffs proposed
The
Goodyear Tire & Rubber Co. will lay off 225 workers at its
Workers will meet today to receive information about the package, which was tentatively agreed upon by officials from United Steelworkers Local 307 and Goodyear. Employees will then be able to vote today or all day Thursday on whether to accept the modifications.
Union officials have made no comments about the proposal. Local 307 president Robert Tripp said earlier in the week that "any specific layoff numbers will have to come from Goodyear."
Thursday, February 19, 2009
Goodyear proposing to cut 400 jobs in Danville
AP, February 18, 2009
Goodyear is proposing to cut more than 400 union jobs at its
Chief Executive Officer Robert Keegan made that announcement Wednesday during a conference call to give the company's earnings report.
The United Steelworkers local that represents the
Goodyear has been in
A Steelworkers spokesman in
Goodyear posted a $330 million loss in the fourth quarter and had a 21 percent decline in sales.
Goodyear cutting nearly 5,000 jobs after 4Q loss
AP, February 18
Goodyear Tire & Rubber Co., the biggest
The Akron-based company said demand for new tires is weak as auto sales slump and the market for replacement tires is also down because people are driving less.
The job cuts equal almost 7 percent of the company's work force and follow the elimination of about 4,000 jobs in the second half of last year.
Goodyear's loss in the three months ended Dec. 31 amount to $1.37 per share, compared with a profit of $52 million, or 23 cents per share, a year earlier.
The company lost $1.18 per share, excluding one-time charges or gains, in the most recent quarter. Analysts surveyed by Thomson Reuters expected a loss of $1.03 cents per share on that basis.
Revenue dipped 21 to $4.1 billion from $5.2 billion a year earlier.
The company said the global economy depressed the number of tires sold in the recent quarter by 19 percent.
As a strategy to boost sales, Goodyear said it will step up new product offerings. These include its Assurance Fuel Max tire, which was introduced earlier this month and will go on General Motors' new Chevrolet Volt electric vehicle.
Besides the job cuts, Goodyear is freezing salaries, putting restrictions on some spending and putting in place purchasing strategies aimed at lowering raw materials costs.
Goodyear also plans to reduce its global tire capacity by 15 million and 25 million tires over two years while seeking ways to improve cash flow this year. It is reducing capital expenditures, inventory levels and is looking to sell noncore assets.
Robert J. Keegan, Goodyear chairman and chief executive officer, said the actions reflect new economic realities.
In a conference call Wednesday morning with analysts, Keegan said Goodyear is feeling the impact of a down market for new cars and people driving fewer miles.
"Today's economic uncertainty, the new economic realities of the world and the implications for our industry and for Goodyear are extremely challenging," Keegan told analysts. "The global economic slowdown has increased both in severity and geographic scope throughout the year. By year end, it had a significant impact in volume in each of our major business units."
Goodyear sales in
But fourth-quarter sales at its North American Tire Segment fell to $1.94 billion, from $2.28 billion a year ago, reflecting lower demand and the sale of its T&WA tire mounting business. The segment had a $193 million loss, versus a profit of $40 million the prior year's fourth quarter.
For all of 2008, Goodyear had a loss of $77 million, or 32 cents per share, versus a profit in 2007 of $602 million, or $2.65 per share. The 2007 result included an after-tax gain of $508 million, or $2.19 per share, on the sale of the company's former engineered products business.
Sales last year were $19.5 billion, slightly less than 2007's company record of $19.6 billion.
Keegan wasn't specific about the timing of the job cuts or where they may be made. But he did say adjustments in staffing and hours at some plants could lead to fewer workers, and he praised the United Steelworkers union for its cooperation.
He said the company reached a tentative deal with local Steelworker leadership at Goodyear's
Kevin Johnsen, Goodyear contract coordinator and a staff representative with the Steelworkers in
"We always have concerns about companies laying off members and we'll do everything that we can to protect our members," Johnsen said. "Other than
In Goodyear's home city, Akron Mayor Don Plusquellic said he appreciates Goodyear's efforts to remain a financially healthy company.
"My thoughts today are first and foremost with employees who face the loss of their jobs." Plusquellic said. "That's why mayors sought to shore-up the safety net for families as part of the Recovery Act signed by the president."
Goodyear shares rose 36 cents, or 6 percent, to close Wednesday at $6.38. Goodyear shares have traded in a one-year range of $3.93 to $30.10.