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.