Union Will Talk If No Plants Closed, Retiree Healthcare Kept - Tire Review Magazine

Union Will Talk If No Plants Closed, Retiree Healthcare Kept

(Akron/Tire Review) As long as Goodyear agrees to not close union plants or cut retiree healthcare coverage, striking union workers said they will return to the bargaining table.

United Steelworkers made that announcement last Friday as its strike against Goodyear reached the one-month mark.

Goodyear has already announced plans to close its unionized Tyler, Texas, plant, and said that its most current offer to the USW has no provisions for future closures.

Reports say Goodyear and the union representatives, including Goodyear North American Tire President Jon Rich, met briefly late last week at an undisclosed location, but no formal talks have been scheduled.

In a follow-up letter to that meeting, USW officials took the company to task for its stance on plant closures and retiree health benefits. “At our meeting this morning, you reiterated the company’s position that, despite the union providing you with numerous reasonable alternatives, the company is intent on continuing to close North American tire factories.

“You also refused to make any changes to your offer of Oct. 5, which included completely washing your hands of your legal and moral obligations to 30,000 retirees and surviving spouse by setting up a trust fund (for health benefit payments) that will run out of money in a few years.”

In response, Rich sent a letter to all Goodyear employees reiterating the company’s desire to remain competitive in the North American market.

"First, in addition to the fact that Goodyear is the only tire company being struck by the United Steelworkers, it is the only major tire company that is offering to invest for the long term in the United Steelworkers’ plants.

"Second, Goodyear, the only tire company being struck by the United Steelworkers, is the only tire company whose core strategy is to bring more new products and more high-value-added branded tires into production at United Steelworker plants.

"And, all that being true, what should Goodyear seek in return? Only that we – all Goodyear associates – be given a fair chance to compete on a level playing field with our foreign-owned competitors. That’s why we simply will not agree to a contract that – before the first tire is produced – makes Goodyear less competitive.

"I don’t believe that you would accept that either because, as we all know, if we fail to remain competitive and serve our customers, all jobs will be lost.

"No one at Goodyear is afraid of competition. I am not. And I know you certainly are not. But the battle for customers should be won or lost on the playing field – in the marketplace – and not decided by a labor agreement that puts us all at a disadvantage.”

Meanwhile, USW President Leo Gerard blasted Goodyear for using temporary workers and “scabs” to continue production at struck plants. "That’s suicidal to threaten us with the plant closure while we’re in the middle of negotiations, and it’s suicidal on their part to tell us that they’re going to try to make tires with scabs," Gerard said last Thursday.

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