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Goodyear, union reach tentative deal

Larry Pitts, a Goodyear Tire & Rubber Co. striker in Tyler, Texas, reads a press release from the United Steelworkers union announcing a tentative end to the strike Friday. (Associated Press photos / The Spokesman-Review)
M.R. Kropko Associated Press
Larry Pitts, a Goodyear Tire & Rubber Co. striker in Tyler, Texas, reads a press release from the United Steelworkers union announcing a tentative end to the strike Friday. (Associated Press photos / The Spokesman-Review)

CLEVELAND – Goodyear Tire & Rubber Co. and a union representing about 12,600 union workers in the United States tentatively agreed Friday to a new contract that would end an 11-week strike over health care benefits and Goodyear’s plan to close a tire factory in Texas.

The third-largest tiremaker and the United Steelworkers union reached the deal after both sides resumed talks in Pittsburgh early this week. The strike began Oct. 5.

The deal allows Goodyear to stick with its plans to close the plant in Tyler, Texas, but not immediately. It provides for a one-year transition period during which workers can take retirement buyouts. The plant employs 1,100 workers.

Goodyear announced on Oct. 30 that it was planning to shut down its unprofitable Tyler plant, which makes wholesale private label tires. The plant’s fate had been a key difference in negotiations. But the union was unable to save the plant beyond the end of 2007.

“Though we’re not entirely happy with the outcome at Tyler, we were able to ensure that as long as Goodyear stays in the market for the tires built at Tyler, those tires will have to be produced at USW-represented plants in the U.S.,” said Thomas Conway, USW vice president and the head of the union’s Goodyear negotiations.

The previous three-year labor agreement expired July 22.

“This agreement validates the solidarity of our members and their families, who wouldn’t allow the company to walk away from obligations earned through a lifetime of hard work and loyalty,” USW President Leo W. Gerard said.

Steelworkers will vote at ratification meetings in their communities on Thursday.

The union said it agreed to a company-financed trust of more than $1 billion that will secure medical and prescription drug benefits for current and future retirees. The USW also said Goodyear would triple its capital investments to at least $550 million in plants covered in the contract.

The 12 Goodyear plants covered by the tentative agreement are in Akron, Marysville and St. Marys in Ohio; Tonowanda, N.Y.; Danville, Va.; Fayetteville, N.C.; Gadsden, Ala.; Lincoln, Neb.; Sun Prairie, Wis.; Topeka, Kan.; Tyler, Texas; and Union City, Tenn.

Goodyear said the agreement helps the company to significantly reduce costs and improve competitiveness in its North American tire business.

“Our goal was always to reach a fair agreement that improves our ability to compete and win with customers. This agreement would accomplish that goal,” said Chief Executive Robert J. Keegan.

Goodyear said the deal will result in improved labor costs and productivity and the immediate implementation of market-based wage and benefit levels for all new hires. Specifics were not disclosed.