Lawton tire plant cited in worker's death

April 1, 2009

Federal investigators have issued a citation against a Goodyear tire manufacturing facility in Lawton in the September death of a worker there.

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 Lawton hospital.

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.

THAILAND WORKERS DEMONSTRATE AGAINST SALARY CUTS AND LAY-OFFS

Thai Press Reports, April 9, 2009

About 500 workers from three companies rallied at the Victory Monument on April 7 and blocked entrances to the Labour Ministry in a complaint about salary cuts and lay-offs, the Bangkok Post reports.

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.

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.

Hoover, a 45-year veteran of the United Rubber Workers and--following their 1995 merger--the USW, made the official announcement at the R/PIC's pre-negotiations policy conference in Pittsburgh the week of March 9. Master contracts with the Big Three tire makers expire in July, and the R/PIC traditionally holds the conference before the beginning of talks in the three-year tire industry cycle.

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 North America went on strike in October 2006 and stayed out for 86 days. Also, in the months surrounding contract talks, several plants either closed or reduced capacity significantly.

Bridgestone shut down its Oklahoma City facility, and Goodyear closed its Tyler, Texas, factory and axed tire production at Valleyfield, Quebec. Michelin sliced production by 30-40 percent at its BFGoodrich site in Opelika, Ala.

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 Albany, Ga., passenger and light truck facility within the next year.

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, Hoover used the world "havoc" to describe the situation with new hires and their wage levels and fringes.

USW officials are unsure if Hoover will participate in the 2009 bargaining round. Contract discussions are due to begin June 1, the effective date of his retirement.

Hoover has been head of the R/PIC since Sept. 1, 2005, when he succeeded John Sellers. Before that appointment, he served the URW and USW in numerous positions, including as Sellers' assistant, a URW staff member, a bargaining committee coordinator, and a member and two-term president of Local 307 in Topeka, Kan. That local is made up of hourly workers at Goodyear's Topeka tire plant.

Hoover will be succeeded by Stan Johnson, currently director of USW District 9 in Nashville, Tenn. Like Hoover, Johnson's roots are in the URW, and he also previously served as the USW's organizing director.

 

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 Topeka plant. Goodyear asked the union to negotiate lowering those levels because of the current economic situation, customer demand, and current product inventory.

"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 Topeka community, whose economy is dependent on large employers like Goodyear and good paying jobs which our negotiations provide to our members," the Local 307 statement said.

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 Topeka facility currently employs 1600 people.

"Goodyear is pleased the membership of USW Local 307 has voted to support the tentative agreement," Davis said in the statement. "This agreement will allow needed flexibility in the production schedule at the Topeka plant during these challenging economic times."

Davis says the majority of the plant will continue to operate at six and two-thirds continuous schedule. The plant's medium radial truck division will run at reduced capacity, while OTR and military Hummer tire production will remain unchanged.

Goodyear layoffs proposed

The Topeka Capital-Journal, March 4, 2009

 

Goodyear Tire & Rubber Co. will lay off 225 workers at its Topeka plant and offer up to 100 buyouts under proposed contract changes to be voted upon by union members on Thursday, WIBW-TV Channel 13 reported late Tuesday.

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."

Goodyear proposing to cut 400 jobs in Danville

AP, February 18, 2009

 

Goodyear is proposing to cut more than 400 union jobs at its Danville plant among 5,000 to be eliminated companywide this year.

 

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 Danville workers has scheduled a vote Thursday on a tentative agreement.

Goodyear has been in Danville since 1966, and is the city's largest employer with about 2,000 workers. It is the largest producer of commercial truck and bus tires in North America as well as aircraft tires.

A Steelworkers spokesman in Gadsden, Ala., said the Danville workers will vote on schedule changes in the part of the plant where truck tires are made.

Goodyear posted a $330 million loss in the fourth quarter and had a 21 percent decline in sales.

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Goodyear cutting nearly 5,000 jobs after 4Q loss

AP, February 18

 

Goodyear Tire & Rubber Co., the biggest U.S. tire maker, said Wednesday it plans to cut nearly 5,000 jobs this year after a sharp drop in sales led to a loss of $330 million in the fourth quarter.

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 North America were helped by higher tire prices and market-share gains for Goodyear-branded consumer replacement tires.

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 Danville, Va. plant to cut capacity and reduce the work force by about 400 people. The agreement will be voted on by the membership Thursday.

Kevin Johnsen, Goodyear contract coordinator and a staff representative with the Steelworkers in Gadsden, Ala., said the Danville plant will vote on schedule changes in the part of the plant where truck tires are made. He wouldn't be more specific until after union members vote.

"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 Danville, Goodyear has not come to us and said they are looking at this plant or that plant."

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.