Goodyear Workers Block French Operations Due to Planned Lay-Offs

Global Insight, June 3, 2009

Goodyear workers in France have blocked operations at the Amiens (France) plant, reacting to the firm's planned lay-offs at the facility, reports local newspaper Le Monde. The strike action yesterday involved about 400-500 workers, who restricted access to Amiens facility for a 24-hour period, demanding Goodyear management review its lay-off plans. Meanwhile, French workers of rival tyre-maker Continental have clinched an agreement with their management to be paid a minimum compensation of 50,000 euro ($69US,670), towards the closure of Continental's Clairoix plant (seeFrance: 1 June 2009:). Continental union representatives have asserted that they plan to join the Goodyear workers in the latter's bid for an equal compensation or fewer lay-offs.

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 Amiens plant, in its bid to reduce its high-cost manufacturing facilities globally. The decision has met with characteristic rebellion from the local French union and with the support of Continental's workers, Goodyear appear set for a tough round of summer negotiations over the job losses.