USW to Monitor Possible Sale of Goodyear's Engineered Products Division

Union will invoke "successorship clause" if any sale is considered

PITTSBURGH, Sept. 20 -- The United Steelworkers (USW) announced today that it plans to closely monitor Goodyear's exploration of its possible sale of the company's Engineered Products business. The USW represents 2,250 members at seven Goodyear engineered products facilities in North America. Goodyear announced earlier today that it has engaged JPMorgan Securities Inc. and Goldman Sachs & Co. as financial advisors in exploring such a possible sale.

"Goodyear has been straight-forward in telling us that it wants to explore this avenue," said USW executive vice president Ron Hoover. "We are certain they will inform all interested buyers of the contractual language that protects our members and the Union in the case of any possible sale."

The current agreement between Goodyear and the USW contains what is referred to as "successorship" language. Quite simply, if the company is looking to sell its engineered products business to a buyer, that buyer is required to recognize the USW as the workers' bargaining representative. In addition, the proposed buyer must negotiate a new labor contract with the USW prior to completing its purchase with Goodyear.

"While the prospect of change always breeds anxiety for workers in these type of scenarios, our members need to know that they will be vigorously represented in the course of any possible transaction," Hoover added.

"In the meantime, we encourage our members to remain focused on working safely and continue servicing our customers with quality products."

The USW represents nearly 18,000 active and more than 22,000 retirees of Goodyear in North America. Some 70,000 of the USW's 850,000 active members work in the tire, rubber and plastics industry.