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)

"They tell us, how can we compete against people who are making 50 cents an hour?" he said.

The new contract creates a wage range of $13 per hour to $24 per hour, a cut in starting pay for new employees but a protection of pay for current workers. There were no raises but the deal allows for cost of living increases for hourly workers.

USW Local 307 vice president Glen Griffith in Topeka, Kan., said workers there who make tires for trucks and earth movers are confident Goodyear will invest in their plant by adding new equipment, technology and making other improvements that may avoid cuts, at least through the life of the contract.

"We have strong demand for the products we produce," Griffith said. "We feel pretty secure at this point."

The contract allows the tiremaker to close a plant in Tyler, Texas, in 2008, provided Goodyear closes a nonunion plant first. About 1,100 Tyler workers who make unprofitable wholesale private label tires are eligible for buyouts of up to $40,000, plus two years' health benefits.

Goodyear agreed to put $1 billion in cash and stock into the fund for retired union workers' medical benefits, higher than the company's previous $660 million offer but less than the union's call for roughly double that amount.

John Russo, a labor studies professor at Youngstown State University, said anxiety among workers and retirees is understandable considering the evolving global economy and the Voluntary Employees' Beneficiary Association health care fund for retirees, which requires court approval.

"VEBAs are relatively new and people are rather uncertain about them," Russo said.

Russo said it also remains to be seen how Goodyear will use the money it saves from closing Tyler and other cuts. Besides investing in U.S. factories, he said it's likely the company will continue investing in overseas plants _ Goodyear has about 80,000 employees in 29 countries.

"That will make the next negotiations even more difficult," Russo said.

"And the unspoken part of this is the age of that work force. The age of that work force is pretty old and the result of that is there will be more and more retirees coming on board," Russo said. That could mean Goodyear will not replace those workers, effectively resulting in more U.S. downsizing, he said.

Workers at four Goodyear plants in Ontario, where about 400 union members are striking, were voting Friday on a separate company proposal.

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Associated Press writers Elizabeth Dunbar in Raleigh, N.C.; Carolyn Thompson in Buffalo, N.Y.; Andale Gross in Kansas City and Joe Milicia in Cleveland contributed to this report.

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On the Net:

Union: http://www.gkdsolidarityexpress.org

Goodyear: http://www.goodyearnegotiations.com