News From USWA: Steelworkers Reject Goodyear Offer; Talks Break Off

    CINCINNATI, Ohio--June 28, 2003--The United Steelworkers of America (USWA) announced today that it rejected a company proposal late last night that would have allowed Goodyear to close many North American facilities, while slashing health care benefits for active and retired members. The company's final offer also made no commitment to restructure its crushing debt, a burden that locks Goodyear into a stranglehold that prevents it from making necessary capital investments in its facilities. No further talks are scheduled.
    "The company claims it needs cost-savings, but it made no commitment to reduce the substantial waste in its operations," stated USWA International vice president Andrew V. Palm. "Also, they have no plan to cut out any of the excessive layers of fat that exists throughout its management system, from the highest levels in its corporate offices right down onto the shop floor."
    USWA financial and legal experts, assisted by Wall Street experts, conducted an extensive examination of Goodyear's finances and operation prior to the beginning of bargaining. The study noted an appalling bloated bureaucratic structure with many excessive layers of managerial personnel and the immediate need for the company to restructure its staggering debt.
    The Union's business plan included a strategy to increase production efficiencies at each of the 14 facilities covered by the master contract negotiations, and a program to rein in rapidly escalating health care and prescription drug costs.
    "If we allow Goodyear to conduct massive job cuts and plant closures, it would devastate American heartland communities like ours," stated Kevin Terrett, president of Local 878 in Union City, Tennessee.
    New contract talks between the USWA and Goodyear began on March 12 in Cincinnati. Contracts at 11 of the plants were set to expire on April 19, but both sides agreed to a day-to-day extension agreement a few days prior to the deadline. The agreement remains in effect with both sides holding the right to terminate it upon delivering a 72-hour notice. Contracts at the other three plants are set to expire on July 6, 2003.
    The negotiations cover contracts for more than 19,000 active workers and 22,000 retirees employed at Goodyear, Kelly-Springfield and Dunlop plants across the U.S. The local unions involved in the contract negotiations include:

    Goodyear Local 2 -- Akron/Green, Ohio

    Goodyear Local 12 -- Gadsden, Alabama

    Dunlop Local 135 -- Buffalo, New York

    Goodyear Local 200 -- St. Marys, Ohio

    Goodyear Local 286 -- Lincoln, Nebraska

    Goodyear Local 307 -- Topeka, Kansas

    Kelly-Springfield Local 745 -- Freeport, Illinois

    Kelly-Springfield Local 746 -- Tyler, Texas

    Goodyear Local 831 -- Danville, Virginia

    Goodyear Local 843 -- Marysville, Ohio

    Goodyear Local 878 -- Union City, Tennessee

    Goodyear Local 904 -- Sun Prairie, Wisconsin

    Dunlop Local 915 -- Huntsville, Alabama

    Kelly-Springfield Local 959 -- Fayetteville, North Carolina

    The USWA represents 1.2 million active and retired members in North America, including nearly 90,000 active workers in the rubber and plastics industry. Headquartered in Pittsburgh, the USWA has 12 districts spanning the continent and more than 2,000 locals. www.uswa.org