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FOR IMMEDIATE RELEASE
Dec.
21, 2006, 2:48PM AKRON, Ohio — Union members walking picket lines say they hope no news coming out of renewed contract talks with Goodyear Tire & Rubber Co. means progress is being made. The United Steelworkers union representing some 15,000 striking Goodyear workers in the U.S. and Canada and the Akron, Ohio-based company have not talked about their negotiations that resumed Monday in Pittsburgh. Both sides confirmed the talks were under way Thursday. The strike began Oct. 5. The talks between the world's third-largest tiremaker and the Steelworkers were the first meetings since negotiations in Cincinnati broke off Nov. 17 after four days. The union and Goodyear disagreed over health care proposals for retirees and plans to close a Tyler, Texas, factory. Though they say they have little information, many strikers in Akron say they have a feeling things this time are going better. "What I've heard is talks are going well," said Roger Enos, 56, of Norton, a 25-year employee. Dave Prentice, spokesman for USW Local 2 in Akron, said he has heard this week's negotiations have gone on until late at night. "That can be extrapolated as a good thing," he said. "You don't know anything. They're just tied up. Do I think (an agreement) is close? I don't know. ... My feeling is, they aren't playing this time." Pickets on Wednesday had meetings to learn about health care insurance alternatives once benefits from Goodyear end Jan. 3. Robert Mathews, 64, of Cleveland, who has worked for Goodyear for 17 years, said the company and union have an interest in getting a settlement soon because both sides are losing money. "I'm optimistic about it. I think they'll finally get together," he said. Goodyear shares fell 42 cents, or 2.1 percent, to $19.31 in afternoon trading on the New York Stock Exchange.
Striking
Goodyear Workers Hopeful For Renewed Talks SUN PRAIRIE, Wis. -- Striking Goodyear workers across the country said that they're hoping for a breakthrough soon.
Locally, it's bringing renewed hope to striking workers outside the company's Sun Prairie plant. They've dealt with everything from rain to snow and most recently cold weather since the 2-month-old strike began in October. As they walk the picket line, talks are scheduled to continue another day. This is more than happened last time when negotiations failed after just one day, WISC-TV reported. "Morale's pretty good," said Mike Zander, who's worked at the plant for 28 years. "Everyone's optimistic Goodyear's talking and we're all hoping they can reach something. That would make the holidays." Donna Sanchez, who's worked at the plant for 18 years, agrees. She said, "I want to thank everyone out there who's donated, supported us, with food and money. It's like, 'bless your hearts.' It's been wonderful." This particular dispute is over health care benefits for retirees and job security. Unless talks fail, folks in Sun Prairie are hopeful they'll get a Christmas present in the form of compromise, WISC-TV reported.
Strikers Picket 150 Goodyear Stores By
NATE JENKINS LINCOLN, Neb. — Union members battling Goodyear Tire & Rubber Co. took their picket lines to about 150 tire retailers in the U.S. and Canada on Saturday, making their case directly to consumers for health care and retirement benefits. In Lincoln, about 50 United Steelworkers members protested at two Goodyear retailers, decrying the company's use of replacement workers during the 2-month strike.
Goodyear spokesman Ed Markey said the protests do not affect plans to return to the bargaining table, scheduled to resume Monday in Pittsburgh for the first time since meetings broke off Nov. 17. "Our goals in the negotiations remains the same, and that is to reach a fair agreement that enables us to be competitive and win with our customers," he said. The company's temporary workers are qualified and received the same training as all new employees, Markey said. "Goodyear will never compromise quality," he said. About 15,000 workers are on strike at 12 U.S. and four Canadian plants, including union members on layoff, sick leave or other time off. Goodyear workers went on strike Oct. 5 after talks broke down on a new contract. 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 and relying on production at its international plants to help supply North American customers. In suburban Pittsburgh, more than 80 people handed out fliers and urged holiday shoppers driving past a Goodyear service center to honk in support of employees. "I'd say (we're getting) a lot of support, and that's what we're doing: educating the public on what the dispute is about," said John Sellers, a retired Steelworkers official. Leo Gerard, USW international president, said the protests were intended to inform consumers about what the union believes is unfair treatment by Goodyear, including plans to slash health care and retirement benefits. AFL-CIO President John Sweeney said the labor group's decision to join forces with the USW for the protests was a statement by working people to Goodyear and other companies.
In Utah, which has no Goodyear manufacturing plants, about two dozen people waived signs along a busy thoroughfare and chanted, "Goodyear, broken promises don't fly." "It's a solidarity meeting," said activist Archie Archuleta, a retired teacher and union member. "Wherever union workers are on strike we try to support them." 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. The company has said its offer protects wages, proposes upgrades to union plants and offers a plan to provide health care coverage for retirees.
Consumer
and AFL-CIO Union Activists to Join Striking Steelworkers to Condemn Goodyear's
Assault on the Middle Class Protest Will Take Place at Five Goodyear Tire Stores on Saturday in PA as Part of Nationwide Day of Action Protesting Goodyear's Betrayal of Workers, Retirees On Saturday, December 16th, consumer, labor and community activists will join striking United Steelworkers (USW), Goodyear employees to protest Goodyear's assault on the living standards of its workers and abandonment of its retirees. Rallies will be held in Harrisburg, Coatesville, Philadelphia and Lehigh Valley as part of a nationwide AFL-CIO-USW Day of Action to educate the public about the company's proposal to cut jobs and drastically cut back health care coverage for Goodyear workers and retirees. Some 15,000 experienced Goodyear workers at 16 facilities were forced out on strike Oct. 5th due to the company's demands to gut their health care, close factories and increase tires being imported from China and other low- wage countries - even after the workers took steps to help the Goodyear get through a rough time in 2003, when it was on the brink of bankruptcy. Goodyear's stock has risen to almost five times as much as it was in early 2003, and top executives have awarded themselves millions of dollars in bonuses. The company is nonetheless threatening to walk away from its health care obligations to some 30,000 retirees, offering a one-time fund that is a fraction of the company's current retiree health care liability. "Goodyear is making itself a poster child for corporate greed by walking away from its American workforce, closing plants and trying to slash health care and retirement security obligations," said Pennsylvania AFL-CIO President William George who will help lead the rally in Harrisburg. "The Goodyear workers are holding the line to save America's middle class." PENNSYLVANIA EVENTS Harrisburg Goodyear Tire Store 4305 Jonestown Road Harrisburg, PA Rally Start: 10:00 a.m. Contact: Greg Reese, USW Local 1688 Phone: (717) 939-9366 Thorndale/Coatesville Area Goodyear Tire Store 3151 Lincoln Highway Thorndale, PA Rally Start: 10:00 a.m. Contact: Irvin Warner, USW Local 1165 Phone: (610) 384-9180 Philadelphia Goodyear Tire Store 1815 W. Oregon Ave. Philadelphia, PA Rally Start: 10:00 a.m. Contact: Gary Ward, USW Phone: (610) 533-1678 Philadelphia/Bensalem Goodyear Tire Store 224 E Center St. Feasterville, PA Rally Start: 9:00 a.m. Contact: Phil Hughes, USW Local 1086 Phone: (215) 913-8271 Lehigh Valley Goodyear Tire Store 1141 MacArthur Rd. Whitehall, PA Rally Start: 10:00 a.m. Contact: George Bonser, USW Local 2599 Phone: (610) 867-3772 Contact: James Deegan (717)231-2867 Bethany Bobb (717) 231-2852
Solidarity
Tours Demonstrates Resolve Of Striking Steelworkers At Goodyear
Turnout exceeds 10,000 at 11 locations; More than 97 % of USW members remain on strike while company production is down 90 % Members of United Steelworkers (USW) bargaining team at Goodyear today concluded a week-long tour to striking plants across the U.S. The tour enabled rank-and-file members to directly address their negotiators regarding the ten-week strike at Goodyear.
"It's also obvious that the company is producing very little without our members," said Ron Hoover, USW executive vice president. "When you discount the mountains of scrap, Goodyear is lucky to be producing at ten percent of pre-strike levels." "It's idiotic for this company to talk about the increased numbers of workers and product," said Conway. "It's like bragging about scoring a touchdown when the final score is 50-7." The Fayetteville plant, for example, now has hundreds of supervisors and replacement workers in the plant along with approximately 300 cross-overs, two-thirds of which were not union members to begin with. "There are half the number workers now as opposed to pre-strike and the plant is lucky if it's producing one-sixth of its pre-strike numbers," said Kevin Johnsen, the USW-Goodyear contract coordinator. "Fayetteville typically makes 50-54,000 tires per day. Now it's about 8,000." "It's really time for Goodyear to step up and stop this foolishness," said Conway. "How long is this company going to waste money by paying replacement workers to sweep floors and paint the plant? "Goodyear needs to acknowledge its health care obligations and return to the bargaining table with responsible proposals."
Biffle
Shoulder Dislocated In Crash
Biffle was testing with Kyle Busch when Biffle's tire suddenly failed, resulting in a fiery crash. Busch helped Biffle from his car after the fuel pump was knocked from the car and ignited. Although the original news release on the accident said Biffle was uninjured, he actually dislocated his shoulder. He was advised by doctors not to travel and missed Friday night's Busch Series Awards Banquet, which he was to attend because he finished ninth in the series standings. Biffle issued a statement late Friday. "During a tire test this week at Las Vegas Motor Speedway I cut a right front tire and made heavy contact with the wall," it read. "As a result of the incident, I dislocated my shoulder and have been advised by my doctors to remain in Mooresville today for further assessment of the injury. It is for that reason that I will be unable to attend this year's NASCAR Busch Series Banquet. I would like to extend my sincerest apologies to NASCAR, the Busch Series and Ameriquest for my absence. It was a privilege and a great pleasure for me to continue to be a competitor for Roush Racing, Ameriquest, Brewco Motorsports and Ford Motor Company in NASCAR's Busch Series this season. I love racing in the Busch Series and I plan to continue to do so for many years."
Goodyear's
Attempts To Recruit Replacement Workers From Continental's Charlotte Plant
Likely Futile "Goodyear is wasting its time and money thinking it can sweet talk members from this Local into scabbing," says Mark Cieslikowski, President of USW Local 850 representing Continental Tire workers. "Our members held strong when we were on strike for a full year in 1998. Out of 1,400 members, only 11 crossed the picket line," added Cieslikowski. "Goodyear should be using that money and effort to negotiate a fair contract with its regular workforce." Goodyear forced 15,000 USW members in 16 plants in North America out on strike October 5. Despite innovations delivered by the union and concessions taken by its members and retirees in the 2003 contract that contributed to a billion-dollar turnaround in the company's bottom line since 2002, Goodyear continues to insist on additional plant closings and more concessions in this round of bargaining. Continental Tire is abandoning retirees and imposing massive reductions in retiree health care beginning in January. Goodyear plans to follow suit and gradually eliminate their obligation to retiree health care as well, proposing that the union set up a trust fund to take over their obligation. "Goodyear and Continental are a lot alike," says Brian Rich, USW Local 850 Financial Secretary. "They do not feel an obligation to the workers who made them successful. Our members and retirees increased company profits, raised the value of the stock and made the company very competitive. Now they only care about making more money without calculating who will buy its tires with so many of us being left by the wayside." Modern Industrial Staffing has been stationed at the Renaissance Inn on Coliseum Blvd. in Charlotte to interview potential replacement workers. The agency says it is recruiting workers for the Danville Virginia Goodyear plant. Local 850 members and supporters have been hand billing and visiting the area to ensure the staffing agency does not succeed.
Striking
Goodyear Workers To Get Holiday Bonus United Steelworkers says it will give a 100 dollar Christmas bonus to the more than 12-thousand workers on strike from Goodyear across the U.S. and Canada. Some 900 other workers striking or locked out from various companies also will receive the bonus. The money is in addition to the weekly strike benefit the union pays the workers. Regular strike pay is 100 dollars a week through eight weeks. The union increases it to 115 a week if a strike goes longer than that. The possible closure of Goodyear's plant in Tyler, Texas, has been among the issues in labor negotiations.
Union At Goodyear-Dunlop Standing Tough On Cutbacks By
FRED O. WILLIAMS
The United Steelworkers of America, in the ninth week of a strike against Goodyear Tire & Rubber Co., have taken a hard line against cutbacks - a sharp contrast to other industrial unions that are going along with reductions in jobs and membership. "It sure is unusual, compared to the rest of industry" said Bruce Belzowski, automotive research analyst at the University of Michigan's Transportation Research Institute. Facing global labor competition, unions have largely accepted a shrinking factory base in the U.S., in return for buyouts that provide a soft landing for today's workers. The strategy avoids a confrontation with their already-weak employers, but puts pensions and retiree benefits on a dwindling base of support. "You wondered when somebody was going to stand up and say "I don't want to accept this,' " Belzowski said. The Steelworkers walked out at North American Goodyear plants on Oct. 5. Locally, about 1,100 production workers are striking the Goodyear-Dunlop plant on Sheridan Drive in the Town of Tonawanda. The strike took many onlookers by surprise, and was expected to be resolved quickly. Instead, the union has stayed out three times longer than its last strike, an 18-day walkout in 1997. As of Friday, no new talks were scheduled. Goodyear says strikers must begin paying for their health benefits Dec. 15. For local tire workers, it's by far the longest walkout in at least 15 years. The last strike locally was a two-week event in 1991 against Sumitomo Rubber Industries Ltd., which sold the Dunlop plant to Goodyear in 1999. In addition to standing tough on the picket lines, the Steelworkers have raised the stakes by aiming a pressure campaign at the company's image. The union accuses Goodyear of being a greedy corporate citizen and questions the safety of tires made by non-union supervisors and replacement workers. A union film clip on YouTube.com called "Are Goodyear Tires Safe?" shows a car spiraling through the air like a two-ton football, while the announcer links the Ford Explorer rollover crisis to defective, strike-produced tires. Locally, leaflets distributed to customers at Buffalo-area retail stores aim a blow at the company's sales base. Goodyear said all its tires meet the same quality tests and standards as before the strike. The Steelworkers are seeking more than $1 billion paid into a corporate fund for retiree health care - something most companies pay as they go, if they promise the benefit at all. The company has agreed to pay in about half the amount. The union also dug in its heels against the closing of a Texas plant, one of 12 union plants in the U.S., that the company says cannot make a profit. "We want all those plants to stay open," Steelworkers spokesman Wayne Ranick said. "If they close one now, what's it going to be down the road?" Goodyear-Dunlop is among the plants that would be protected from shutdown in the company's contract proposal - a deal that would expire in three years, Ranick notes. By contrast, Detroit automakers are downsizing at a furious pace with the aid of lucrative buyouts and early retirement incentives. In the latest wave of departures, some 38,000 United Auto Workers members have opted to leave Ford Motor Co., the company announced Wednesday. More than 400 of them are from Ford's metal stamping plant on Rt. 5 in Hamburg, according to union officials. The departures are softened by bonus payments of $35,000 for retirees and up to $140,000 for workers short of retirement. UAW officials say they don't like the job reductions, but don't see much of a choice. "In the auto industry, the UAW recognizes Ford has lost a big chunk of market share," said Charles Gangarossa, president of UAW local 897 in Hamburg. "It's evident they don't need all the facilities we have today." Still, downsizing isn't the way he'd prefer to deal with it. "I believe American companies should bring work back in that they outsourced, and keep people working." The confrontation at Goodyear is a departure for the Steelworkers union itself, which cooperated as other big employers like Bethlehem Steel closed plants and shrank jobs. Ranick denied the union has shifted strategy. He said that the situations aren't comparable, because of different financial underpinnings of the tire industry compared to steel and autos. "It's
apples and oranges - Goodyear's not in bankruptcy," he said. Bethlehem
Steel did file bankruptcy, but not before shedding major plants and thousands
of workers. As contract talks began, Goodyear North American president Jonathan D. Rich said, "to win in North America we must see reality."
Goodyear
Strikers Spread Word In New York Two
striking workers from Goodyear's Union City tire plant will return to
Tennessee today after taking part in a rally of workers in New York City. The New York city rally was organized by the United Steelworkers union, which represents Goodyear workers at the plant. About
15,000 workers are currently on strike, said Mike McKenzie, a tire builder
who lives in Troy. Around 30 union members were sent to New York on Tuesday to pass out leaflets and flyers, informing the public that the union is on strike, said McKenzie by phone on Thursday. The union's rally was designed to coincide with NASCAR's Nextel Cup awards ceremony; Goodyear is the exclusive provider of tires to NASCAR, McKenzie said, standing in front of Hilton Hotel's Waldorf=Astoria. "We (were) going around to different venues and speaking to NASCAR drivers and patrons and letting them know that we are striking," he said. "A lot of the drivers and pit crew people did not know that we are on strike." McKenzie estimated that he and other Goodyear workers were meeting between 700 to 1,000 people daily. "What we (were) really trying to do is get Goodyear serious about negotiating on a contract," he said. David Puckett, a lead hand coordinator at the Union City plant, said his union's presence in New York will help pressure Goodyear into reaching an agreement with the union. "A lot of peoples' eyes are not open to what Goodyear is doing right now and what we stand for," he said. Puckett said union workers had little time for fun, despite being in the Big Apple. "We have seen a lot of things, but we (had) an agenda we (had) to follow," he said. "I (hated) coming here for this reason. I'd rather be here visiting. "We'd like to know that when we came to New York we opened a lot of eyes to what Goodyear is trying to do," Puckett said, "and that we want to go back to work."
Local
Goodyear Workers Take Strike To NYC
Not a typical day in the life of the 14-year Goodyear employee from Lincoln. “It’s been an eye-opening experience,” Hawthorne said of the past week, much of which she’s spent handing out flyers in New York. Along with fellow Goodyear union members, Hawthorne was in New York trying to educate people during NASCAR Victory Week about what the United Steelworkers union says is a potential safety risk to customers during a labor strike. More than 12,000 union workers in the United States and Canada — including hundreds at a factory in Lincoln — have been on strike since Oct. 5 after the company and union negotiators failed to agree on a new labor contract. Since the strike began, Goodyear has been making tires at some of its plants with nonunion and temporary workers, as well as managers. The Lincoln plant produces various kinds of belts, but does not make tires. In making its case against the use of temporary workers this week, the United Steelworkers union cited a 2002 study by Princeton University that examined the causes of the Firestone and Ford recall of 14.4 million tires in 2000. According to the steelworkers, the study linked labor strife, including the use of replacement workers, with the production of defective tires. The company, however, argued its safety procedures have not been affected by the strike. “Goodyear will never compromise quality,” said spokesman Ed Markey. “We have systems and procedures in place to ensure every tire meets our safety standards.” Markey declined comment on the study, but said the company has dedicated, full-time experts who work to ensure safety standards are met by temporary workers. Markey also cited recently released independent quality audits of three of the company’s tire manufacturing plants that, he said, found the company was meeting safety standards. NSF Industrial Strategic Registrations, an independent quality auditor, conducted audits at three of Goodyear’s plants affected by the steelworkers’ strike. The audits found Goodyear to be 100 percent compliant with “international quality systems standards,” according to a company news release. Said Joe Gingo, Goodyear’s chief quality officer: “The bottom line is that the public can be confident in the quality of Goodyear tires.” Back in New York, Wayne Fiedler of Lincoln joined Hawthorne in taking his union’s strike to the streets, handing out pamphlets to NASCAR drivers and other employees. The union chose to target NASCAR employees and drivers because Goodyear is the exclusive provider of tires for the event. Fiedler said the NASCAR drivers have generally seemed concerned when informed of the use of temporary workers during the strike. “There are some safety concerns with inexperienced workers building their tires,” he said. Reach Kevin Abourezk at 473-7225 or kabourezk@journalstar.com. Demonstration planned Striking Goodyear workers plan to hold demonstrations at tire stores across the country today, including in Lincoln. United Steelworkers members, retirees and supporters will gather at 8 a.m. at the Graham Tire locations at 21st and Cornhusker and 68th and O to “educate the public about the ongoing labor dispute at 15 North American Goodyear plants,” according to a news release from the union.
USW
Blasts J.P. Morgan Analyst Patel's Misinformation About Goodyear Strike
Yesterday Patel wrote that "a key date for the strike could be January 3, when health care coverage for striking workers is cut off, which could spur increased pressure from union members to reach an agreement." "Another projection that's dead wrong by a guy who just doesn't do his homework," said USW International vice president Tom Conway. "We want Goodyear to stop stone-walling and return to meaningful negotiations. But the facts are that the real cut-off date is in mid-April. COBRA legislation gives you 60 days to make a decision to continue coverage and another 45 days before you have to make payment. "The real problem is how consistently inaccurate his forecasts are. They seriously cloud any possibility of a clear-headed analysis of the strike, and how it might be resolved," said Conway. In October, Patel wrote that inventory and reduced production should provide supply for around four months. Three weeks ago, the Washington Times and others were already reporting shortages. In the same report, he stated that the USW had only one response -- a strike, and that it had already utilized it, completely ignoring the USW's vast repertoire of strategies to pressure the company in other ways. "What's most disturbing is that this supposed independent analyst talks exclusively to the company and does nothing but parrot their lines," said Conway. "Other more sophisticated analysts take the time to hear the USW point of view. Patel's willful ignorance causes him to grossly underestimate our resolve and our ability to impact the company," added Conway. "He needs to either do his research or admit that he is nothing but a shill."
Nov.
27, 2006, 1:33PM NEW YORK — Shares of Goodyear Tire & Rubber Co. slid Monday amid investor worries about a lack of progress toward resolving a United Steelworkers strike that has lasted nearly two months. In afternoon trading, Goodyear shares were down 99 cents, or 5.5 percent, to $16.90 on the New York Stock Exchange. Over the past year, Goodyear shares have traded between $9.75 and $19.31. About 12,000 workers represented by the union in the United States and Canada went on strike Oct. 5 after talks broke down on a new contract. Since the strike began, the Akron, Ohio-based company, has been making tires at some of its North American plants with nonunion and temporary workers as well as some managers. "Recent United Steelworkers press releases suggest that while both Goodyear and the union are still not close to an agreement (we think progress this weekend was limited), it is possible the union is also increasingly concerned about rank and file morale," JPMorgan's Himanshu Patel wrote in a note to investors. "Strike duration remains tough to call but Goodyear certainly seems to be bracing for a long strike (given $1 billion revolver drawdown, $1 billion debt offering)." Patel reiterated his "Overweight" rating for Goodyear's stock, saying that once a labor agreement is reached it will likely include labor concessions. The analyst added that a key date for the strike could be Jan. 3, when health care coverage for striking workers is cut off, which could spur increased pressure from union members to reach an agreement, he said.
11/23/06-Tyler As we reported last night, the man driving the vehicle in question, is one of only two union members who have crossed the picket line during the seven week strike. Strikers say they were picketing, when a crew from inside got off work. According to union procedure, they can stop cars up to 30 seconds before letting them through. They say every night, as traffic backs up, some heated words are exchanged. They say last night those words turned to action. Union members say a worker hit a picketer with his side view mirror, then threatened to run the rest of them over. The injured picketer was taken to the hospital, but was released a short time later. 11/22/06-Tyler The union worker hit, identified as Kenneth Robbins was treated and released, but he severely sprained his shoulder. Workers say the driver of the car was 1 of 2 workers who have crossed the picket line at Goodyear since the strike began. Company officials released a statement about the incident. They say they are cooperating with law enforcement, but at this time they do not expect any criminal charges to be filed. Police are talking tonight to other workers who witnessed the incident.
NO
PROGRESS MADE IN UNION-GOODYEAR TALKS "We're at the same place today that we were yesterday," said Jim Wansley, president of USW Local 746L. "We'll still be here tomorrow and we'll be available to meet if the company wants to meet." Talks started again Tuesday in Cincinnati after the union broke off bargaining discussions Oct. 5 and began a strike on the Goodyear plants after the company refused to guarantee that it would keep the Tyler plant open. Wansley said the union has not set a date to return home. Goodyear spokesman Ed Markey said he had nothing to report regarding the Wednesday discussions between the union and the company. Goodyear stock closed at $18.45 on Wednesday, up 11 cents. On Tuesday, it closed at $18.34, up 10 cents; an earlier story incorrectly stated the increase.
Union
Leader Critical Of Goodyear Using Temporary Workers CLEVELAND The head of the United Steelworkers today criticized Goodyear Tire and Rubber for its plans to close a plant in Tyler, Texas.
Gerard says that's "suicidal" to threaten workers with a plant closure while they're in the middle of negotiations -- plus to say they're going to try to make tires with "scabs." Goodyear on Monday announced plans to close it unit in Tyler and eliminate about eleven-hundred jobs. The plant's fate had been a key difference in negotiations that have been stalled since more than 12-thousand workers went on strike October fifth. Goodyear says the Tyler plant is an unprofitable segment of the business. The company, in a statement, says the marketplace isn't going to wait for Goodyear to get a labor agreement. No formal talks have been scheduled.
TASK
FORCE PLANS TO BE GOOD NEIGHBOR TO GOODYEAR WORKERS Union officials reiterated Wednesday that their fight to keep Goodyear in Tyler may be far from over, even as community leaders gathered to prepare services for 1,100 workers who could face layoffs.
There was a sense of urgency in the boardroom at Tyler Junior College, where officials from various state and local agencies met with the goal of establishing a single location to provide services for employees facing layoffs - but the tone was far from panicked. "I think it's directly related to lessons learned during (hurricanes) Katrina and Rita," said Jason Holmes, president of the United Way of Tyler/Smith County. The task force is chairedd they also want to get church and school leaders involved to help families of Goodyear workers. Fred Peters, director of marketing and public information for TJC, agreed to return to the task force Nov. 15 with a preliminary plan to establish a single location where laid-off workers can find help with jobs, health care, training, food, stress management and other assistance. It's not clear whether the service center would be at TJC. TJC President Dr. William Crowe said the idea to organize the effort through TJC came from the college's experience with the hurricanes. TJC provided shelter to more than 200 hurricane evacuees, including patients with special medical needs. Hundreds of evacuees sought help from a central location on South Broadway Avenue, where local and federal officials doled out food, employment and housing information, and financial assistance. Crowe said the college, recalling those chaotic weeks and the value of a "one-stop" help center, was determined to be proactive with the Goodyear situation. While local union officials said the plant closure is still uncertain, they have already instructed members to start looking for jobs. "This community has seen many challenges before," said Tyler Mayor Joey Seeber. "We've seen plants close before, and we've seen many ups and downs of the oil and gas industry ... We will all get to see just how resourceful our community is and just how much people care." Jim Wansley, president of United Steelworkers Local 746L in Tyler, said the task force's efforts are appreciated, but he underscored that negotiations between the company and the union haven't ended, a note echoed in small print on Goodyear's Web site. "It needs to be made plain that we appreciate everything they (the task force) are doing ... but all Goodyear has done is made an announcement in line with resisting this strike, and while they're serious about closing the plant, we're already on strike for that," Wansley said. "What our people need now is help finding jobs until this strike is over." The company has not provided a timeline for closing the Tyler plant. Wansley was in Pittsburgh preparing for a Thursday strategy planning session with union leaders. Workers, meanwhile, continued their strike, and local union vice president Harold Sweat said no one was crossing picket lines. The striking workers have gone without wages since Oct. 5, and their health and dental benefits will expire the first week of January if the strike continues, Sweat said. He said it costs the average employee about $100 a month for a family benefit plan, even while on strike. Chamber president Tom Mullins said employers from around Texas, especially in the Gulf region, are already inquiring about hiring striking and laid-off Goodyear employees. He said some inquiries have come from out of state, too: "I didn't realize it, but I guess Hobbs, N.M., is growing like crazy." The union and Goodyear have tried since July to reach a labor deal. Since workers agreed to closing a plant and cutting pay and other benefits in 2003, union members are not happy with the current contract proposal, which they say includes pay and other cuts - particularly after top executives got big bonuses this year. The company denies that pay cuts are part of the latest proposal. Securities and Exchange Commission records show Goodyear CEO Robert J. Keegan collected a $2.6 million bonus last year, while the head of the company's North American tire division, Jonathan D. Rich, collected $680,000. The company has been making cuts as part of a plan instituted three years ago to recover from more than $1 billion in losses in 2002, plus accounting errors and a stock dive. Its shares fell from $20 in 2002 to below $4 on the New York Stock Exchange. Goodyear returned to profitability for the first time since 2000 this year and its stock has rebounded. Shares closed at $15.34 on Wednesday, gaining one cent on the day and 38 cents since Goodyear announced plans to close the Tyler plant.
Goodyear
marchers greet replacements Striking Goodyear workers had only one word for the temporary employees hired to replace them as they exited the company Monday afternoon. “SCAB!” They chanted the word loudly - punctuating it with figure pointing - to each and every person. As Goodyear employees entered Day 26 of the strike, the company announced it was closing its plant in Tyler, Texas, and a group of temporary employees started their first day of work at the Danville plant. Cars began entering the plant about 6 a.m. They were met by about 300 striking workers who did not let them pass in silence. And the striking workers were there to greet them at the end of the day. They had all their bases covered. At about 4:45 p.m., about half of a large group that had assembled at the Goodyear entrance walked to its exit. A fleet of police cruisers strolled down Goodyear Boulevard and officers took their positions to ensure there would be no violence. As the clock struck 5 p.m., a couple of cars attempted to exit the plant using the contractors’ entrance, but officers redirected them to the main exit - and into the waiting faces of the workers. Workers who carried signs were able to walk slowly back and forth across the exit, therefore slowing down, but not stopping the temps from leaving. While those without signs yelled at the top of their lungs from along the sidelines, those with signs made sure they got as close to the vehicles as they could without touching them. Some of the temps stared straight ahead in an attempt to ignore the screams as they started on their way home. Others chatted on cell phones, smoked cigarettes and bobbed their heads to loud music. A few appeared to be laughing in amusement. By 5:20 p.m., the last “scab” had left the building. “OK, ladies and gentlemen, good job,” Local 831 Vice President Terry Trull told the group of striking workers. Just as with their strike plan, workers plan to protest the hiring of the temps every single day, according to Trull. An advertisement ran in Friday’s Danville Register & Bee seeking “skilled personnel with tire building experience.” Temporary workers also have been hired at a Goodyear plant in Gadsden, Ala. Stafford Weaver, a Goodyear employee for 32 years, pulled the clipping from the classified section of the local newspaper from his shirt pocket. He pointed out the next to last line, which read “Top Pay.” “They don’t want to give us top pay,” Weaver said. “They want to cut our pay 40 percent.” United Steelworkers Local 831 spokesman Dana Dixon said the move to hire temporary workers is an effort to break the union. Goodyear spokesman Ed Markey said the company is hiring temporary workers at its “affected plants” so it can keep serving its customers. Dixon said he believes about 20 percent of the temporary workers will quit because the work is too demanding. Bobby Bryant, a union member, said he’s concerned temporary workers will not know how to operate the machines, and the risk of accidents will increase. The Virginia Department of Labor is investigating an accident that took place earlier this month at the plant. Fred Gerrells suffered serious injuries, including broken bones, while operating a machine at Goodyear on Oct. 18, about 13 days after the strike began. Carolyn Brooks pondered why the temps did not apply for jobs at a company such as Yorktown Cabinetry, instead of threatening her job and those of her co-workers. “This is our job security,” Brooks said. “This is messing with our livelihood - retirees, the whole package.” Bryant called the strike an extended vacation. He said any Goodyear worker knows the possibility for a strike exists about every three years. “You have to set money aside in case there is a strike,” Bryant said, adding the strike has not hurt his pocketbook. He has a construction business on the side and owns a couple of rental properties. Dixon said two union members have crossed the picket line to return to work since the strike began on Oct. 5. About 2,200 workers at the Goodyear plant are members of Local 831. Dixon said a move is underway to put the names of workers who cross the picket line on the union’s Web site. “Anyone who crosses the picket line is a scab,” he said. Besides the two union members who have returned to work, those that remain seem faithful to the cause. “We
are going back to work,” Brooks said. It’s just a matter of
time.”
October
30, 2006 there today were less than pleased with the latest developments. Trucks continue to roll in and out of the Danville Goodyear plant, and Monday morning brought some other arrivals, about twenty cars carrying temporary workers to replace the union employees on strike. Union spokesman Dana Dixon says picketers were orderly and law-abiding and Danville police say there were no problems. But union leaders say the move shows Goodyear is not ready to bargain in good faith. Now nearly four weeks into their strike, union leaders say the resolve of the workers remains strong. Local restaurants have been providing meals for the picketers on the line and officials say community support continues to pour in. Striking
workers will also be eligible for union strike benefits starting next
week.
Union
prepares for arrival of temps at Goodyear Gadsden United Steelworkers Local 12 President Dennis Battles said sending in temporary workers could increase tension on the picket line at the plant's entrance. He said union members on Monday will discuss "rules of engagement." "They're not replacement workers, they're temp workers," Battles told The Gadsden Times for a story Saturday. Battles said the union is concerned about possible problems at the picket line when the temporary workers enter the plant. "We've never seen the situation where people tried to go in and work our jobs in there," Battles said. "There are some things we're addressing and trying to talk to our people." Goodyear officials in Gadsden declined comment and referred calls to corporate officials in Akron, Ohio. "Goodyear is selectively adding temporary workers in affected plants to continue serving customers," Goodyear spokesman Ed Markey said in a statement Friday night. "Among the critical products are items needed by the American military in its war on terror around the globe. "The temporary workers will be trained in safety and quality procedures to ensure their seamless addition to our operations." Workers at 12 U.S. plants and four in Canada went on strike Oct. 5 after negotiations broke down between USW and the company. The union was working on a day-to-day extension of the contract that expired July 22.
Published: October 25, 2006 11:29 am Strike labors on at Goodyear plant BY
CORTNEY MCMAHON Matthew Megger has been making tires at the Goodyear-Dunlop plant in the Town of Tonawanda for 13 years. But for the past three weeks he has stood on a picket line despite the fact that he has a family of six to support. The United Steel Workers declared a strike against the Goodyear Tire & Rubber Company Oct. 5 after failing to agree on labor negotiations. Twelve plants in the United States, including 14,000 United Steelworkers union members, are participating in the strike. In the Town of Tonawanda, 1,200 employees of the plant are on strike. As of Tuesday, formal negotiations have still not been scheduled, said Ed Markey, spokesman for the Goodyear Tire & Rubber Co. However, the lines of communication remain open, he said. The Goodyear Tire & Rubber Co. has met production requirements since the strike, Markey said. But production has been lower than usual. Markey said the plants have used salary employees to fill the vacant positions. Also, non-union plants have continued regular production, he said. “We will do what we have to do to continue serving our customers,” Markey said.
“We’re just out here trying to fight to keep our jobs,” Megger said. Vic Martin, a mechanic who has been with the plant for 21 years, said it is important for workers to support the strike. “(If not), you might as well just quit and let someone else take your job,” he said. For now, Megger is supporting his wife and four step children on the family’s savings. The union workers are eligible for medical benefits for up to 90 days after the strike begins. However, they receive no income during the period. The strikers are not eligible for unemployment until December, said Sam Frank, an electrician who has been with the company for 27 years. Frank is also trying to support his wife and daughter on no income. “You have to tighten your belt,” Frank said. “No more going out to dinner.” The union can not give members money, however, it can supply food and gas vouchers. Next week, $100 vouchers will be distributed to members, said Kathy Kluczynski, vice president of the Local 135, the area Steelworkers union chapter. In the meantime, all members can do is wait, said Mark Kurkowski, United Steelworkers Local 135 union chapter president. “We’ll be picketing until we get this settled,” Kurkowski said. Workers said they are willing to picket as long as they have to. “We’re all hoping it ends soon, but until they start talking, nothing will get done,” Frank said.
10/24/06-Tyler Governor Rick Perry and Democratic challenger Chris Bell made stops in East Texas, and addressed the strike now in its 19th day. Specifically, we asked what is the state doing, and what is the governor's role in keeping Goodyear in Tyler. Perry and Bell say their plans can work, and Bell says the governor has the power to make a company negotiate in good faith. "One of the greatest powers the governor of Texas has is the bully pulpit, and I would use that to do everything I can to support these workers and keep this plant open," said Bell, who visited striking workers outside the Tyler plant. Bell wouldn't say whether cities and counties, or the state should shoulder most of the cost of incentives, but he says the state's fund used to lure businesses to Texas, needs to work to keep them here. "This would be a perfect example of a use of the Governor's 'slush fund,' otherwise known as the [Texas] Enterprise Fund. I think some incentives can be given to Goodyear to keep these doors open," he adds. Rallying in Henderson, Perry says Bell doesn't have the full picture. "That's not the only tool we have in this state. So he may be overlooking $21 million that we're bringing in from sundry sources to put on the table," Perry said. He says the funds to attract new business should remain for just that. "[Bell] may be pointing to one thing that's not built for that type of process. That's like trying to cross the ocean in a canoe. It's not built for that," Perry added. Meanwhile, as the strike lingers on, workers say ordinary folks need to pay attention. They continue to say the ripple effect of Goodyear's exit would be catastrophic. "I buy your products at the mall. I buy your shirts. I buy your cars. And guess what? I won't be buying them anymore," says striking worker Billy Williams. The president of the United Steelworkers Local in Tyler, Jim Wansley, tells us that workers are prepared to hold out as long as it takes to save the Tyler plant. However, he says workers are concerned about possible permanent damage to Goodyear's operations by the prolonged strike, continuing even after a strike is over.
10/23/06-Tyler
Strike
may hamper auto makers Rubber workers hit the road at Goodyear Tire & Rubber Co.'s 16 plants in North America Thursday in a strike that could seriously disrupt auto makers in North America, some of which are already in the midst of major production cutbacks. About 15,000 members of the United Steelworkers union (USW) went on strike at four plants in Canada and 12 U.S. factories that produce tires, belts, hoses and other products for virtually all auto makers in the two countries. Such key Goodyear customers as General Motors Corp., the Chrysler group and Caterpillar Inc. said operations wouldn't immediately be affected, while the tire giant said it would fill orders with imported tires, inventory and output from non-union plants, as well as by using salaried workers at unionized sites. “Goodyear
is a significant supplier for us and produces tires for at least a version
of all the vehicles we make,” said Ed Saenz, a spokesman for DaimlerChrysler
Canada Inc. Spokesmen for other auto makers that assemble vehicles in
Canada confirmed that they also use Goodyear tires, but would not identify
which vehicles. Two tire-making plants in Canada — in Napanee, Ont., and Valleyfield, Que. — are not affected by the strike, which involves about 400 workers in Canada. Goodyear presented Canadian negotiators for the USW with a final offer just hours before the 1 p.m. strike deadline Thursday, USW negotiator Marie Kelly said. “It's been a good 12 days since we last met with Goodyear,” Ms. Kelly said. The strike comes as Chrysler, Ford Motor Co. and GM trim production dramatically in the fourth quarter to deal with slumping sales caused by the increase in gas prices earlier this year. Depending on how long the strike goes and Goodyear's ability to keep some plants operating, it could aggravate the woes the Detroit-based three are already facing. “The company left us with no option,” USW executive vice-president Ron Hoover said in a statement. “We cannot allow additional plant closures after the sacrifices we made three years ago to help this company survive,” he said. In 2003, the USW agreed to one plant closing in the United States and concessions on wage, pension and health care, Mr. Hoover said. Closing more plants would devastate communities and could threaten Goodyear's long-term viability, he said. Goodyear said the rejected proposal would have improved its competitive position, while maintaining a “substantial commitment” to North American production.
Goodyear
hit by continent-wide strike "The company left us with no option," said Ron Hoover, executive vice-president of the United Steelworkers of America. "We cannot allow additional plant closures after the sacrifices we made three years ago to help this company survive." Goodyear, the world's third-largest tiremaker, has vowed to keep its plants open and running during the labour disruption. The labour strife affects 12 plants in the United States and four plants in Ontario. They include a hose factory in Collingwood, a power transmission plant in Owen Sound and two operations in Toronto, a warehouse complex and a retread plant. The union also represents workers in St. Mary's, Ohio; Marysville, Ohio; Lincoln, Neb.; Topeka, Kan.; Buffalo, N.Y.; Union City, Tenn.; Danville, Va.; Sun Prairie, Wis.; and Fayetteville, N.C. Goodyear spokesman Ed Markey declined to comment on the possibility of plant closures, and declined to tell the Associated Press which plants could be closed. "The union rejected a comprehensive set of proposals that mirror the other industry agreements," Markey said. "Our final offer to the union included a plan to secure retiree medical benefits and provide job security and investment guarantees for USW plants." Goodyear plans to keep its production running with or without its unionized workers. But some analysts wonder how long the company can keep operating. "It certainly looks like the company is prepared to continue to operate without union workers," Fitch Ratings Managing Director Mark Oline told Reuters. "It remains to be seen how long they can do this and how efficiently." About two-thirds of Goodyear's tire production is for the replacement market and one-third is for automakers. "It's
too early right now to tell if there would be any effect," Chrysler
Group spokesman Markus Mainka said. Toyota Motor Corp.; Ford Motor Co.
and General Motors Corp. all said they have a stock of tires available,
but analysts questioned how long these stocks will last given the industry's
move to just-in-time production.
Goodyear's
Workers Hit the Road It was a bit of brinkmanship, but the steelworkers union representing about 15,000 Goodyear (NYSE: GT) employees made good on its threat to go on strike at 16 plants in the U.S. and Canada. While the short-term effect may make the tire maker's stock a little soft -- it could cost Goodyear some $2 million a day -- in the long run it may very well prove to be the catalyst that sets off some impressive growth. The sticking point between unions and management seems to be plant closings. Three years ago, the union had agreed to one plant closing and made concessions on pay, pensions, and health-care benefits. It's estimated that Goodyear can save $50 million by closing a plant, and while the company would not divulge what it was offering, it's thought that it wanted to close more than one underperforming factory. That was unacceptable to the union, which canceled its day-to-day contract agreement and went on strike. Tire makers in addition to Goodyear have been driving on a road full of potholes consisting of higher raw materials costs, higher fuel prices, and cheap imports. In particular, Chinese imports have been undercutting the market. Cooper Tire & Rubber (NYSE: CTB), for example, recently put one of its factories on flextime and was increasing the amount of tires it sold from its foreign plants because of the impact of cheaper imports. Passenger tire imports topped 100 million tires for the first time in 2005, with Chinese tires rising 47% since 2004. At the same time, U.S. tire production has steadily declined from 223 million tires in 2000 to 176 million in 2005. It's not just U.S. manufacturers that have been harmed, either. Continental, Bridgestone, and even B.F. Goodrich (NYSE: GR) have all faced bumpy roads this year. Italian tire maker Pirelli canceled its IPO as the market for tires worsened. U.S. manufacturers have had to raise prices to offset the cost of rising raw materials and oil, which makes up a large portion (about 60%) of the overall cost of a tire. While Goodyear has announced plans to exit from the lower-cost private-label tire business -- that is, tires made by manufacturers like Goodyear but sold under a different name and usually at much lower cost -- the move was seen as strategic in that it allowed the tire maker to focus on selling only its most profitable lines. The company has been struggling to turn itself around for three years now, and it has largely accomplished that by reaching a more firm financial footing. But Goodyear still has large legacy pension costs to contend with and a large amount of debt that it must pay down. The steelworkers' strike may be just the thing that allows Goodyear to speed up the transfer of manufacturing overseas. It already has some 90 manufacturing facilities in 28 countries at which it could increase production. There would not necessarily be a need to buy a plant or outsource production as other companies might have to do, which would allow Goodyear to power-shift ahead of competitors that do not have the same global reach. It's doubtful Goodyear would publicly admit that the strike is what it needs to further expand overseas production, but it did say that in response to the strike it would have to rely more on imports to make up the difference. When the strike is ultimately settled, it would not be surprising to this Fool if overseas production levels did not return to lower pre-strike levels. Should Goodyear's stock price suffer a blowout as a result, investors might want to use that deflation as an opportunity to pick up shares. Greater overseas production will ultimately reduce costs, which will roll down to the company's bottom line later on.
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