Goodyear Contract Brings Mixed Emotions

Karen Williams, a Goodyear employee at the Technical Center, holds a summary of the contract as she walks back to the USW Local 2L union hall, Thursday, Dec. 28, 2006, in Akron, Ohio. Goodyear Tire & Rubber Co. union workers were deciding Thursday whether to end their a 12-week strike of the world's third-largest tiremaker. (AP Photo/Tony Dejak) (Tony Dejak - AP)

CLEVELAND -- Approval of a new labor contract by striking Goodyear Tire & Rubber Co. workers was met with mixed emotions _ from confidence from investors to apprehension from some workers who fear for the future of their jobs with the world's third largest tiremaker.

About 10,000 of 14,000 striking United Steelworkers members from 12 Goodyear plants in 10 states voted Thursday on the three-year agreement, which includes plans to close a Texas tire factory but creates a $1 billion health care fund for retirees.

The contract was approved by all locals and by the overall membership by a 2-to-1 margin, the union said Friday. The contract needed to be approved by a majority of the locals _ seven out of 12 _ plus a majority of the voters.

The vote means an end to the strike that began Oct. 5. and a return to work beginning Tuesday.

Goodyear shares hit their highest level in a year Friday, closing up 98 cents, or nearly 5 percent, to $20.99 on the New York Stock Exchange. The previous high of $20.38 was reached Tuesday after word that the company had reached a tentative deal with the union. The year's low was $9.75.

Goodyear chief executive Robert Keegan said the pact will help the company significantly reduce its costs, making it a stronger global competitor and employer.

Company spokesman Ed Markey said Friday that the agreement means a chance at a bright future.

"Our goal was to reach a fair agreement that enhanced our ability to be competitive and this agreement does that," he said.

USW executive vice president Ron Hoover said the company's commitment in the contract to invest $550 million in union-covered U.S. plants over the next three years "secures our jobs for the future."

But some rank-and-file workers said they're anxious about what lies ahead, including worries about job security and fear that the retirement health care fund will be underfunded.

"That is probably the biggest question out there. They (Goodyear management) are committed to putting $550 million into the plants. We'll see. We hope we're dealing with honorable people," said Dave Prentice, a worker on temporary assignment with USW Local 2L in Akron.

Arthur Kielec, a seven-year employee at Goodyear-Dunlop in Tonawanda, N.Y., said some are nervous about foreign competition.