Union workers go on strike against Goodyear after failing to reach new contract agreement

Thursday, October 5th 2006, 12:59 pm
By: News On 6

AKRON, Ohio (AP) _ Workers at 16 Goodyear Tire & Rubber Co. plants in 10 states and Canada went on strike Thursday after the world's third largest tire maker and the steelworkers union failed to agree on a new labor contract.

The union said the company's latest proposal would have included two plant closings.

``The company left us with no option,'' said Ron Hoover, executive vice president of the United Steelworkers of America, which represents the Goodyear workers. ``We cannot allow additional plant closures after the sacrifices we made three years ago to help this company survive.''

The old contract expired July 22 and both sides agreed to an indefinite day-to-day extension. The union issued a 72-hour notice on Monday and said they would terminate the contract at midday Thursday if an agreement wasn't reached.

The company said it was prepared to keep its plants open and take care of its customers but did not immediately say how it planned to do that.

Goodyear ranks No. 3 in the world in tire sales, based on revenues, behind top-ranked Bridgestone and No. 2 Michelin, according to the trade publication Tire Business.

Goodyear spokesman Ed Markey declined to comment on whether the company's offer involved plant closings.

``Our final offer to the union included a plan to secure retiree medical benefits and provide job security and investment guarantees for USW plants,'' Markey said. ``The union rejected a comprehensive set of proposals that mirror the other industry agreements.''

The union said it represents 15,000 employees at 12 Goodyear plants in the United States and four plants in Canada where its members have gone on strike. By the company's count, the U.S. plants have about 12,600 employees represented by the United Steelworkers.

Goodyear shares fell 17 cents to $14.12 in afternoon trading on the New York Stock Exchange. Its shares have ytraded in a 52-week range of $9.75 to $19.31.