Union Counters, Goodyear and USW Remain Far Apart - Tire Review Magazine

Union Counters, Goodyear and USW Remain Far Apart

(Akron/Tire Review) As promised, the United Steelworkers offered its counter to a master contract proposal laid out by Goodyear last week.

The counterproposal was issued late on Sept. 15, and industry observers note that they were considerably different than the tiremaker’s offer, leading to concern that the two sides remain far, far apart.

Goodyear said last week that it would not complete a deal with the union until the USW ratified a new contract with Bridgestone/Firestone. However, that position did not stop the tiremaker from issuing a new proposal to the union.

The union’s plan calls for protected status for all Goodyear plants, wage and benefit increases, and protection of retiree benefits, while Goodyear offered protected status to all but two of its plants, cuts overall employment by 10%, and seeks cuts in wages, benefits and retiree benefits.

The USW’s Goodyear bargaining committee presented a proposal that calls for (in the union’s words) continuing COLA; eliminating the 70% new hire progression rate and returning to pre-1997 hire in rate and progression; enhancing the hourly employee profit sharing program; paying out to the hourly employee group bonuses equal to that paid to the upper management; maintaining supplemental workers compensation; recovering the 2003 two-year pension freeze; increasing the pension multiplier and the existing formula; increasing accident and sickness benefits; increasing basic life insurance coverage; maintaining Medicare Part B reimbursement for retirees; upgrading medical benefits for actives and retirees; keeping contingent workers out of plants; securing meaningful capital investment guarantees for USW plants; enhancing the existing employee 401K and adding a 401K Roth program; keeping plant protection guarantees for all union plants; improving hourly employee staffing level guarantees; and strengthening outside contracting protection.

Goodyear offer package, presented last week, included plant protection for all but two Goodyear master plants, including guarantees of no layoffs below a fixed number at protected facilities; a new wage grade system; pay increases for approximately 31% of the workforce (as of July 2009); pay protection for current workers through July 2009 unless they move to a lower job grade; continuation of COLA distributed as a percentage based on pay rates; revised piece work incentives; an “exit incentive” for up to 10% of the active plant personnel; pension increases with length of service; life insurance improvements for active employees; plant investment guarantees; a plan to protect competitive retiree medical benefits into the future; reduced vacations for new hires; and “active health care changes.”

You May Also Like

Club 3633 nominations for 2024 are open

Club 3633 is an exclusive group of industry professionals that celebrates the next generation of innovators in the tire industry.


Tire Review is searching for tire industry influencers – someone who is really changing things for the better, innovating and making strides in your company! Nominate them for our 2024 Class of Club 3633 here.

Club 3633 is an exclusive group of industry professionals that celebrates the next generation of innovators in the tire industry. The club takes its name from Charles Goodyear’s patent for the vulcanization of rubber, U.S. Patent 3633, which can be seen as a starting point for the modern tire industry. It is in recognition of his fierce determination and accomplishment that our Club 3633 takes its name.

Straightaway Tire brings on industry vets to promote training initiatives

John Wafler and Jason Servidio will drive platform-wide internal training initiatives for Straightaway Tire.

TyreXpo Asia 2024 confirmed for Bangkok

The event is expected to attract over 4,000 international attendees from around 60 countries.

Hamaton to relocate its European distribution hub in Germany

The new location, still located on the Siemensring business park, will provide increased storage space and more.

Hankook Tire’s Rob Williams on leveraging momentum for global expansion

The company’s North America president tells all regarding product philosophy, dealer growth strategy, and what responding to the tire market means in 2024.


Other Posts

Bill Ziegler, Ziegler Tire president, dies

Bill spent 48 years with Ziegler Tire, most recently as president.

Pirelli marks 50 million tires manufactured at Mexico plant

Since 2012, Pirelli has invested over $900 million in the plant.

Falken tests new R/T, M/T tires at The King of the Hammers

Seven different competitors fit their vehicles with Wildpeak tires.

Yokohama Rubber commits to SBTi validation for sustainable targets

This commitment letter pledges to set and submit targets that are aligned with the SBTi’s target-setting criteria within two years.