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FOR IMMEDIATE RELEASE
Chrysler To Unveil Restructuring Plan TIME FOR ACTION: Industry analysts have predicted job losses and the possible closures of two plants after the auto giant lost US$1.5 billion over the last quarter AP,
DETROIT The official, who did not want to be identified because he is not authorized to speak about the plan, said the restructuring will not be as drastic as in 2001, when Chrysler shed 40,000 employees with layoffs and the sale of component plants. Company spokesman Jason Vines would not comment on the plan, details of which were reported by the Detroit News on Friday. Industry analysts have predicted job cuts and up to two plant closures as Chrysler moves to stem losses. The company lost US$1.5 billion in the third quarter, and its sales were down 7.7 percent through last month compared to sales in the first 11 months of last year. Chrysler chief executive officer Tom LaSorda has said he does not expect widespread buyout and early retirement offers to be included in the restructuring. Domestic competitors Ford Motor Co and General Motors Corp (GM) both offered buyouts to all their hourly workers earlier this year. About 38,000 Ford workers signed up for the offers, while 34,000 GM employees have decided to leave the company. LaSorda has been giving the DaimlerChrysler governing board updates on the restructuring at its meetings, the official said. The board last met on Wednesday. Analysts have speculated that a Chrysler plant in Newark, Delaware, that makes large sport utility vehicles and one in St. Louis that makes pickup trucks are likely to be closed when the restructuring is announced. DaimlerChrysler AG plans to make its earnings announcement for this year at Chrysler Group's Auburn Hills headquarters on Feb. 14. In July, the company began to look for cuts amounting to US$1,000 per car, but expanded its cost-cutting efforts in September after the dramatic third-quarter loss.
Goodyear,
Strikers Reach Tentative Deal
The world's third-largest tiremaker and the union reached the deal after both sides resumed talks in Pittsburgh early this week. The strike began Oct. 5. The deal allows Akron-based Goodyear to stick with plans to close the plant in Tyler, Texas, but not immediately. It provides for a one-year transition period during which workers will have the opportunity to take advantage of retirement buyouts. The plant employs 1,100 workers. Goodyear on Oct. 30 announced it was planning to shut down its unprofitable Tyler plant that makes wholesale private label tires. The plant's fate had been a key issue in negotiations. But the plant's lifespan could not be won beyond the end of 2007, the union said. "Though we're not entirely happy with the outcome at Tyler, we were able to ensure that as long as Goodyear stays in the market for the tires built at Tyler, those tires will have to be produced at USW-represented plants in the U.S.," said Thomas Conway, USW vice president and the head of union's Goodyear negotiations. Goodyear said the agreement helps the company's plans to significantly reduce costs and improve competitiveness in its North American tire business.
The previous three-year labor agreement expired July 22. The union said it agreed to a company-financed trust of more than $1 billion that will secure medical and prescription drug benefits for current and future retirees. The USW also said Goodyear would triple its capital investments to at least $550 million in plants covered in the contract. "This agreement validates the solidarity of our members and their families, who wouldn't allow the company to walk away from obligations earned through a lifetime of hard work and loyalty," USW President Leo W. Gerard said. The 12 Goodyear plants covered by the tentative agreement are in Akron, Marysville and St. Marys in Ohio; Tonowanda, N.Y.; Danville, Va.; Fayetteville, N.C.; Gadsden, Ala.; Lincoln, Neb.; Sun Prairie, Wis.; Topeka, Kan.; Tyler, Texas; and Union City, Tenn. Goodyear
said it has made a proposal to its Canadian workers and is awaiting a
response. Goodyear has two in plants Toronto and plants in Collingwood
and Owen Sound. Gary Schaefer, vice president of the Steelworkers Local 286 in Lincoln, Neb., said he hadn't read the entire agreement and was unsure how members might respond to it. "We'll call this hurdle one," Schaefer, 54, said of the tentative deal. "There's all kinds of things that still got to happen."
Strikers Believe No News Is Good News In Goodyear (12/21/06 -- AKRON, OH) - Union members walking picket lines say they hope no news coming out of renewed contract talks with Goodyear means there's progress being made. The
United Steelworkers union represents some 15-thousand striking Goodyear
workers. That includes those at a plant in Fayetteville. Neither union
officials nor the Akron-based company have talked about the negotiations
that resumed Monday in Pittsburgh. The strike began October 5th. A spokesman for the union's local in Akron says he's heard that negotiations have gone late into the night, which he says can be interpreted as a good thing. One veteran Goodyear worker says the company and union have an interest in getting a settlement soon because both sides are losing money. Goodyear shares hit their highest level in four years on Wednesday at 19-73. This morning, they cooled off to 19-44 in trading on the New York Stock Exchange.
Will
the Goodyear Strike Be Done By Christmas? With
Christmas approaching many may begin to wonder about the impact that this
strike is having on the employees' families. Goodyear Employee, Cynthia Nichols, had this to say about the events, "With the Visa&and you know, the help that the union gives us, they haven't left us out in the cold." Union leaders report that they've had to help pay rent, car notes as well as electric bills for striking members. Local Union Vice President Mike Price commented, "We&it impacts us enough that we get on it right then and call the electricity company or the car company or whatever and tell them&hey wait a minute &we've got money coming. Do not cut this person's lights off." Goodyear executives have said that they are seeking a contract that will help the company become globally competitive. The company has said that its offer protects wages, proposes upgrades to union plants and offers a plan to provide health care coverage for retirees. Employees are hopeful that a new deal and contract are in the works, but if not&"There won't be no Christmas, it'll be real slim. Real slim&if it wasn't for what the union has done for us as far as food vouchers, we would be scraping. At least we can eat." Says Goodyear Employee Kenneth Hubbard.
Goodyear
Strikers Stage Demonstration At Frankfort Tire Store
Goodyear
Gets Court Order Limiting Number of Strikers
Goodyear got injunctions against the protesters, limiting their numbers to only 25 strikers at a time, including shift changes. Strikers said the injunction may be because of several hundred protesters lining the entrance of the Goodyear plant on Tuesday. Goodyear did not respond when asked to comment on the injunctions.
USW
Says Goodyear Repeatedly Snubs Offer of Experienced Tire Builders to Solve
Military Production for Soldiers in Iraq News From USW: The United Steelworkers (USW) today blasted Goodyear's neglect in responding to the USW long-standing offer to meet the challenge of fully satisfying the demand for tires on Humvees used by soldiers in Iraq.
Although Goodyear continues to claim that it is meeting the military's production needs, Rep. Hunter says that with production levels reduced by 35%, there is a shortage within the military. "We have long recognized this potential problem and have made a number of offers to the company to work collectively to solve it," said Tom Conway, USW International vice president. "We put it in writing on October 2, when we delivered notice to the company of our intent to terminate our contract extension agreement." In a letter addressed to Jim Allen, Goodyear Director, Global Labor Relations, Conway wrote: "With regard to the manufacture of any product used directly to support our nation's troops, we are prepared to meet with you to discuss an orderly process that would allow the Company's non-bargaining unit personnel to continue to meet those limited needs." The 200-worker proposal originated with the USW and was part of a plan developed by Robert Tripp, USW Local 307 president at the Goodyear-Topeka facility. "We clearly understand the needs of our soldiers," said Tripp. "Many of our members are Veterans. We are more than willing to do our part to provide them with the best equipment possible." Following Rep. Duncan's call yesterday to USW International Leo W. Gerard, Conway approached Goodyear with another offer to help the company meet the demands of the military. "They dismissed the offer and refused to even acknowledge that a problem exists," said Conway.
"Let's set the record straight," said Conway, a Vietnam era veteran. "We have family members fighting in Iraq, so we want to do everything necessary to ensure their safety. That's why we have time and time again offered our help so that the company can meet the needs of our fighting men and women." Goodyear forced more than 15,000 workers in 16 plants in the U.S. and Canada out on strike on October 5 by refusing to negotiate a fair and equitable contact with its USW-represented employees. Despite sacrifices made by workers and retirees three years ago to help the company get back on track, Goodyear continues to insist on more closures and health care cuts.
Humvee
Tire Shortage Prompting Call For End To Goodyear Strike
Striking
Workers At Goodyear Seek Global Support She came a long way to do that. "I think it's very important," she said. "Companies seem to move plants to Baltic countries and China. Companies are working together worldwide and we need to work together, too." Strikers against Goodyear are trying to use their union's international ties to raise awareness of their two-month strike. The Pittsburgh-based United Steelworkers on Tuesday brought a friendly seven-member labor delegation from Sweden to visit strikers in Akron, where Goodyear is based and where it has a small manufacturing plant. In all, about 12,000 Goodyear workers are on strike in North America. Workers at a Topeka, Kan., plant that makes tires for trucks and earthmovers are among those striking. Birgersson-Brorsson, 46, used the visit to show support. "We don't have many strikes in Sweden. I would like to tell them don't give up. It's about human rights, really," she said. Goodyear workers went on strike Oct. 5 after talks broke down on a new contract. Neither side has said when it will return to talks, which broke off again Nov. 17 after a four-day resumption. Since the strike began, Goodyear has been making tires at some of its North American plants with nonunion and temporary workers as well as some managers. The company is counting on production at its international plants to help supply North American customers. Goodyear has said it intends to close its Tyler, Texas, tire plant by next year because the company is ending production of low-profit private-label tires. The union wants all plants protected from closing. The USW also strongly objected to a company proposal for creating a retirees' health care trust, which the union argues shortchanges retirees. Goodyear executives have said they are seeking a contract that will help the company be globally competitive. Goodyear spokesman Ed Markey said Goodyear's only concern is "running our business and making high quality Goodyear tires everyday." In 2005, about $9.1 billion of Goodyear's $19.7 billion of net sales, or about 46 percent, came from its North American Tire segment. Goodyear has operations in Europe, the Middle East, Africa, Latin America and Asia. "It's a global customer base," Markey said. The company has about 80,000 employees globally. That's not lost on the Steelworkers. "To win this fight, one of the things we have to do is engage other unions internationally. It's an opportunity to alert other unions about the struggle here," said Gerald Fernandez, assistant to the USW president for international solidarity. The USW has recently signed strategic alliances with unions in Australia, Brazil, Germany, and Mexico to coordinate bargaining and organizing with common employers, support each other during strikes and disputes with common employers and form industrial activities and policies. "It's a way of expanding a fight for our members and retirees outside the borders of the United States. It's kind of difficult to fight a corporation exclusively here when it's certainly got the ability to generate money in other countries," Fernandez said. He said the union will have other international delegations come to the United States and will send groups of Goodyear strikers to Europe and South America, where Goodyear has operations. A delegation recently was in Brazil. "I'm hard pressed to see how and why that's going to persuade Goodyear's management to change its own position significantly," said Alan Tonelson, a research fellow at the Washington-based U.S. Business and Industry Council. "I really don't understand how these workers can hope to succeed in the absence of fundamental changes in U.S. trade policy." He said a low-income labor surplus in places like China work against what gains the USW may try to make. "The only type of global union cooperation that could significantly help a U.S. union like the USW would be if unionization and labor rights lead to very dramatic strides in low-income nations," Tonelson said.
Union
Raises Cash For Striking Goodyear Workers "At no time of year is it easy to be on strike, but this time of year is especially difficult," said USW Ontario/Atlantic Director Wayne Fraser. "Our members in Sudbury, Sault Ste. Marie and elsewhere know what it's like and they have shown their willingness to help. Generosity is a Steelworker tradition." The 400 workers were among 14,000 across 16 plants in North America who have been on strike for 10 weeks. Both the tire maker and the union have taken a hard line over company plans to close plants and slash employee benefits. Goodyear insists it must cut spending to offset rising raw material costs and competition from cheaper, overseas manufacturers. The union, however, says the company wants to layoff workers in order to expand importing tires manufactured in low-wage countries. "This fight is not just about Goodyear," said Fraser. "It's about maintaining jobs and manufacturing in Canada. The drain on families and communities has got to stop. The Goodyear strikers are a vanguard in the fight to save Canadian jobs." The
workers walked off the job in protest over the company’s demands
to close factories and import tires from low-wage countries. As well,
Goodyear workers vow to hold out “one day longer” than the
company to obtain a fair and equitable contract that provides reasonable
job security and for a fair deal on retiree health care.
Leo
Gerard Appeared on "Lou Dobbs Tonight"
Tires Focus Of Rally USW targets Goodyear dealers across U.S. BY
ANDREA HOLECEK HIGHLAND | United Steelworkers have expanded their battle with Goodyear Tire & Rubber Co. across the United States and in Canada, demonstrating Saturday at locations where the company's products are sold. The rally -- held in Northwest Indiana at two Levin Tire Center locations that sell Goodyear tires -- was part of the USW's National Action Day "to educate the public about the ongoing labor dispute at 15 North American Goodyear plants." The union claims that dispute could cause the production of inferior tires, said Robin Rich, USW District 7 coordinator for the Goodyear campaign. "Wall Street has invested billions of dollars to break the union since the strike began," she said. Goodyear is the USW's largest employee with 15,000 members. Thus, the union is vowing to ramp up its public campaign for a fair union contract at Goodyear throughout the holiday season and as long as it takes to gain justice, Rich said. The Goodyear tire plant workers have been on strike since Oct. 5 because of "unfair demands by management" that gut their healthcare, close factories and import tires from China and other low-wage countries, she said. The company contends its current contract offer is fair because it protects current employees' wages, health care and pension benefits, protects retirees benefits, and provides job security, according to company spokesman Ed Markey. Goodyear "will not agree to a contract that puts us at a disadvantage versus our foreign-owned competition," he said. Since the strike began, replacement workers, whom the USW labels "inexperienced," have been on Goodyear's production lines. The union says their lack of experience could cause problems like the ones that occurred when replacement workers filled union jobs at Firestone. The USW points to a 2002 Princeton University study that has linked labor strife, including the use of replacement workers, with the production of defective tires. The study examines the causes of the Firestone and Ford recall of 14.4 million tires in 2000 and estimates that "more than 40 lives were lost as a result of the excessive number of problem tires produced …during the labor dispute," according to the USW. Markey said Monday that the company "will never compromise quality." "Our long-standing systems and procedures ensure that every Goodyear tire meets our quality standards," Markey said. "In every plant, 100 percent of our tires are being screened for quality before they leave the factory." Plus, the quality engineers, trainers and technology personnel who oversee the screening systems and procedures are all experts and full-time salaried employees who continue to perform their functions as they did before the strike, Markey said. Dale Andres, manager of the Highland Levin Tire Center, said he couldn't make any comment on the situation.
Strikers
Say Goodyear Tires Not Safe Goodyear strikers say your family's safety may be at risk, despite the company stating it has met perfect quality standards. The strikers say replacement workers are more likely to make defective tires. They are basing their argument on a Princeton study examining Firestone tires made by replacement workers in 2000, which were linked to 271 fatalities and 800 injuries. Ford recalled more than 14 million tires. Now, Goodyear workers on strike say they are worried about the tires Goodyear replacement workers are making. "If you've got other people doing your job that you specialize in, would you be comfortable with them? I don't know,” said Goodyear striker Roy Hoag. Goodyear says they will check the quality of their tires every six months, whether the strike is over or not.
Steelworkers'
Anti-Goodyear Message Rolling In Ottawa, Regina On Saturday
The campaign asking Canadians to refuse to buy Goodyear Tire and Rubber
products until the strike involving 15,000 families across North America
is settled will be going to Ottawa and Regina this weekend.
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