USWA:Steelworkers Demand Investigation into Goodyear Decision on Production of Assurance Tires

PITTSBURGH--Feb. 1, 20049, 2004--The United Steelworkers of America (USWA) today demanded an investigation into the possible violation of its contract, which calls for new products developed for sale in North America to be manufactured in Steelworker-represented plants. Earlier this month, Goodyear announced that the new Assurance tire line would be produced at its non-union facility in Lawton, Oklahoma.

"The company's announcement significantly undercuts the goodwill and cooperation that is the basis of the contract ratified by our members last September," said USWA International vice president Andrew V. Palm. "We are deeply concerned that this announcement came without any discussion or notice, particularly given our patience and understanding regarding the company's slow progress on their promised financial restructuring."

"While we remain committed to working with the Company, we will not allow it to become a one-way street. This Company has some serious explaining to do to its employees and their Union."

The Protected Plant provisions of the contract guarantees "meaningful and significant first consideration and preference" to twelve USWA facilities for producing new products developed for sale in North America. These provisions were critical features of the recently negotiated agreement which provided USWA members with a network of job security measures in exchange for providing the company with the short-term flexibility it needed to get its operations back on track.

The contract also requires Goodyear to reduce its debt obligations and refinance its debt by December 31, 2003, with the Union holding the right to strike if the refinancing is not completed.

"Today, we are demanding an immediate and thorough investigation of the company's failure to commit to producing this tire line in one of our facilities," said Ron Hoover, USWA Contract Coordinator. "And we will continue to closely monitor all developments relating to the investigations of the Company's accounting irregularities.

The USWA represents 19,000 workers at 13 facilities throughout the U.S. They are located in Akron, Ohio; Buffalo, New York; Danville, Virginia; Fayetteville, North Carolina; Freeport, Illinois; Gadsden, Alabama; Lincoln Nebraska; Marysville, Ohio; St. Marys, Ohio; Sun Prairie, Wisconsin; Topeka, Kansas; Tyler Texas and Union City, Tennessee.

All the facilities except the Tyler plant were designated as protected plants in the contract. The Tyler facility was granted partial protected status, with the opportunity to obtain full-protected status upon attaining certain goals. As part of the agreement, the Huntsville, Alabama facility was not granted protected status and was closed in December 2003.

Protected Plant status guarantees among other things, no closures during the three-year contract; minimum staffing levels; import restrictions; capital investments commitments as well as "meaningful and significant first consideration and preference" for new products developed for sale in the North America market.

The USWA represents 1.2 million active and retired members in the U.S. and Canada.