Strike hits 16 Goodyear plants

Rejecting the company’s latest contract proposal, 15000 United Steelworkers employed at Goodyear, world’s third largest tire and rubber manufacturer, declared to enter picket lines at 16 plants in U.S. and Canada.

The United Steelworkers of America had laid down an ultimatum on October 2, stating that if no contract was reached with Goodyear within three days the employees at 16 plants (12 Union plants and 4 nonunion plants) will give a nationwide call for strike.

Soon after the three year contract ended on July 22, the two sides had been working under a day-to-day contract extension. The union was however looking at a long-term master contract that would cover the 15,000 employees at the 16 U.S. plants.

The 2003 negotiations between both parties had resulted into closure on one plant at Huntsville, Ala and financial cuts on wage, pension and health care to help company come out of financial crises.

Where on one hand, Goodyear is looking at closing down two of its plants along with some concessions, the union seems determined not to accept the offer.

The union’s plea cites that further closure of plants would not only cause additional job losses but it would also threaten the company’s long-term viability.

Defying further consensus USW Executive Vice President Ron Hoover said, “We cannot allow additional plant closures after the sacrifices we made three years ago to help this company survive."

Goodyear's chief negotiator, Jim Allen, claims that the latest offer protects the jobs and pensions of its employees. He also feels that such conditions are necessary for the company’s survival.

"We simply cannot accept a contract that knowingly creates a competitive disadvantage versus our foreign-owned competition and increases our cost disadvantage versus imports", Allen said.

According to the company officials, the final offer made to the members of the Union Steelworkers of America includes the provision of job security demanded by the striking employees.

However, financial analysts estimate that the walkout may cost the company a hefty price of $2 million a day. Negative signs of strike have already shown at the New York Stock Exchange’s composite trading, where shares of Goodyear saw a fall of 3 cents to $14.26.