In announcing its fiscal 2012 and fourth quarter financial results, Titan International chairman and CEO made some remarks regarding the status of the company’s ongoing negotiations 
with the USW.
But in answering follow-up questions from financial analysts about the labor situation, Titan chairman and CEO Morry Taylor, 68, intimated that his retirement is not far off. "If they approve it (a new contract)…and if I live to my word from what I am looking to do then this was my last time that I’ll have to go through negotiating a contract with the U.S. labor union," Taylor said.
The Titan chief did not elaborate and none of the analysts inquired further.
Two Titan tire plants – Freeport, Ill., and Bryan, Ohio, have been working without a contract since December 2010 when Titan claimed an impasse in contract talks and enforced its so-called "last, best offer." Workers at Titan’s Des Moines, Iowa, plant agreed to a new three-year deal in late 2010, and contract talks between Titan and the USW have “continued” ever since.
In the news release outlining Titan’s 2012 financial performance, Taylor addressed the contract issue: “One of the biggest problems in the quarter was in the performance of the three U.S. tire plants. I believe most of this had to do with the unionized work force due to the fact that both Freeport and Bryan have been working for the past two years under a best and final proposed contract. The company and the union have been negotiating the terms of a new CBA since September 2012. The union is in the process of reviewing the proposed CBA. The union has told Titan that they expect all three Titan Tire plants to vote on the new four year proposed contract the week of March 4. Titan believes this proposed contract is fair to our employees and the company.”
Later, Taylor held a conference call with financial analysts, and again broached the labor contract issue. According to transcripts by SeekingAlpha.com, Taylor stated:
“…When you go into negotiations this year, we started mainly in September and …and what transpired is we have come to a mutually satisfied (deal) where we believe that it is a fair deal for our employees and we believe that is a fair deal for us and what it covers is going to vote, March 4. They are taking the proposed new contract and they’re going around to the factories…We look forward to a positive vote and we hope that they recognize the same thing… If they approve it, it will be a full-year contract and if I live to my word from what I am looking to do then this was my last time that I’ll have to go through negotiating a contract with the U.S. labor union.”
Taylor continued by saying that while Titan expects a positive result from the negotiations, if they break down again, “we’ll just keep going under our best and final that we had before. I mean that’s the risk that you take.”
