USWA Contract Advances Goodyear Turnaround

AKRON, Ohio, Sept. 15 -- The Goodyear Tire & Rubber Company said today that its newly ratified, ground-breaking three- year contract with the United Steelworkers of America is an important step toward the turnaround of its North American business.

The Steelworkers announced earlier today that the contract with the largest American tiremaker was ratified with 13 of 14 U.S.-based plants voting in favor, including favorable votes from 66 percent of the eligible population.

"This ground-breaking agreement is fair and demonstrates what can be accomplished when the parties work cooperatively to address the serious problems facing U.S. manufacturers," said Robert J. Keegan, chairman and chief executive officer of Goodyear. "This is a successful conclusion and a necessary step in the North American Tire turnaround process that was outlined to analysts in April."

Keegan added, "The agreement is the product of five months of intense negotiations, and represents the beginning of a new partnership dedicated to improving the competitiveness of our North American operations."

The new contract provides Goodyear with much needed containment of health care, benefit and wage costs. It also provides unprecedented opportunities for improved productivity and streamlining of its North American manufacturing operations as well as the ability to source products globally where most needed for competitive purposes.

For the Steelworkers the contract provides its membership enhanced job security, exceptionally competitive wages and benefits, and unparalleled opportunities for cooperation between Goodyear and the USWA on a broad range of issues.

The specifics of the contract will be addressed in a conference call for financial analysts and media scheduled for 10 a.m., Monday, Sept. 22. Keegan and North American Tire President Jonathan D. Rich will host the conference call.

"I offer my personal congratulations to union and company negotiators for heir tenacity, patience and innovation, and to the union members for approving the final agreement by such a wide margin," Keegan said.

Keegan also said both the ultimate outcome and the exceptional levels of customer service that were maintained throughout the process, "reflect the dedication and commitment of all our associates to our customers and to improving our performance in North America."

The 14 plants and their workers covered by the agreement are: Akron, St. Marys and Marysville in Ohio; Lincoln, Neb.; Sun Prairie, Wis.; Topeka, Kan.; Danville, Va.; Union City, Tenn.; Gadsden, Ala.; Freeport, Ill.; Tyler, Texas; Fayetteville, N.C.; Huntsville, Ala., and Tonawanda, N.Y.