Goodyear Tire, Union reaches tentative agreement on new contracts

12/23/06 - newratings.com

NEW YORK, December 23 (newratings.com) – Goodyear Tire & Rubber Co (GT) and the United Steelworkers Union have reached a tentative agreement on new contracts, resulting in an end to the 10-week-old strike by thousands of the company’s workers. About 14,000 workers are expected to vote on the new deal on Thursday.

The tentative agreement provides for a one-year transition period for Goodyear Tire & Rubber’s workers instead of the earlier proposed immediate closure of the company’s Texas plant. The plant is now proposed to be closed after December 31, 2007. The new contract ensures secured retiree health care benefits, besides calling for increased investment in union facilities. Goodyear Tire & Rubber said that the new agreement will enable the company to reduce costs and improve competitiveness in the North American segment.