News From USW: Mass Market Tire Segment Hurt by Low-Cost Imports

PITTSBURGH--July 11, 2006--News From USW: The United Steelworkers (USW) acknowledged receiving notice today from BFGoodrich of the company's intent to reduce production by some 30 to 40 percent at its Opelika, Ala. plant beginning in the fourth quarter of 2006.

The USW and BFGoodrich are currently engaged in master contract negotiations, with the company serving as the target in establishing a pattern agreement for the industry.

"This is not a productivity issue," said USW executive vice president Ron Hoover. "It's about marketing and that's why we're working to secure the long-term viability of the Opelika plant by negotiating capital investment expenditures that will enable Opelika to upgrade the products it produces."

Given the glut of imports from low-cost countries such as China, companies are abandoning producing lower margin tires in North American facilities.

The BFGoodrich-Opelika facility currently employs 1300 workers. The indefinite layoff will impact approximately 30 to 40 percent of them. The plant produces BFGoodrich, Uniroyal and private and associate brand mass market passenger and light truck tires, primarily for the U.S. market. It is the union's position that all of these tires should be produced in USW-represented facilities.

The USW represent some 70,000 members employed in the North American tire, rubber and plastics industry and 850,000 members overall.