USW members vote to end Goodyear strike

[Omaha Steve]

Collective Bargaining Digest

Sunday, December 24, 2006

by Tula Connell, Dec 23, 2006

Last night, the United Steelworkers (USW) and the Goodyear Tire and Rubber Company reached a tentative agreement on a new three-year contract after union movement-wide support of the more than 15,000 striking workers publicly highlighted how Goodyear planned to send jobs to China and abandon its obligation to provide health care benefits for 30,000 retirees. The union said the agreement:

secures retiree health care benefits and dramatically increases Goodyear’s investments in union facilities.

In a victory for workers, the tentative agreement requires Goodyear to rescind its demand for immediate closure of its Tyler, Texas, plant and instead provide for a one-year period of transition during which workers will have the opportunity to take advantage of sizeable retirement buyouts.

Goodyear sought to close the Tyler plant–its third plant closure in four years–despite making nearly $500 million in profit last year. In moving to close the plant, Goodyear tried to walk away from promises the company made to work in partnerhip with the USW and not cut jobs after union members came to Goodyear’s aid several years ago by taking wage and benefit freezes when the company experienced financial hardship.

Says USW President Leo W. Gerard:

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. We owe a debt of gratitude to the entire labor and activist communities, which rose with unprecedented solidarity to challenge Goodyear’s assault on our members.

The Tentative Agreement was endorsed by the USW’s Goodyear Policy Committee, made up of local union leaders from the company’s master contract facilities throughout the U.S. Members at these locations will vote at ratification meetings in their communities on December 28.

Although details of the tentative agreement will not be released until USW members at Goodyear have voted in a ratification election scheduled for next week, the union said that the agreement addresses three crucial areas of concern by:





* Establishing an innovative company-financed trust of more than $1 billion that will secure medical and prescription drug benefits for current and future retirees.
* Enhancing the ability of USW-represented plants to meet the challenges of global competition by having Goodyear triple its capital investments to at least $550 million in those plants.
* Maintaining affordable, high quality medical and prescription drug coverage for active members and retirees.

Although the union is ”not entirely happy with the outcome at Tyler,” says Thomas Conway, USW vice president and chairman of the union’s Goodyear negotiations:

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. The company simply won’t be able to outsource that work or service this market segment with imports from China or anywhere other than a USW facility.

Says Ron Hoover, USW Executive Vice President:

What we achieved would never have been possible if we hadn’t struck.

The ratification vote will follow informational meetings at each location. A majority of the majority principle applies meaning that a majority of the locals as well as a majority of the overall membership must vote to accept the Tentative Agreement as the new contract.

On Dec. 16, thousands rallied in support of the striking workers at Goodyear tire sales outlets across the country, and Goodyear was voted corporate Grinch of the Year this week in Jobs with Justice’s annual Grinch contest. Many gave generously to the USW Strike Fund to help workers and their families through the holidays.

USW members had been on strike at 12 plants across the nation and 3 in Canada since Oct. 5.

[Bluzmann57]

1. The people's voices are being heard

At last, it seems that Organized Labor may be making a comeback. It just shows what real solidarity can do. When we all stick together, we can affect change.