The Goodyear Tire & Rubber Co. can compensate for a wage guideline violation by holding the line on prices, the Council on Wage and Price Stability said yesterday.
The special anti-inflation agreement was the third reached in recent weeks between the council and a major rubber company.
It will allow Goodyear, based in Akron, Ohio, to pay its employees salary and benefit increases of about 26 percent over the next three years, as was negotiated in an industrywide "pattern" contract in June. The anti-inflation pay rules call for a maximum 22.5 percent increase over that time. Goodyear will not be allowed to raise.
But under the special agreement prices to cover the amount the wage settlement exceeds the guideline limit.
"Specifically, Goodyear had committed to comply with a price limitation in the second year (of the anti-inflation program) that is more restrictive than is otherwise imposed by the price standard," said the council, which oversees the voluntary wageprice program.
Similar agreements were reached Sept. 26 with B.F. Goodrich and Nov. 1 with Firestone Tire & Rubber Co. Both are Akron-based firms.
The council has not yet reached a special agreement with Uniroyal Inc. of New York.