Buffalo News (New York), August 11, 2006, Saturday

Copyright 2006 Buffalo News
Buffalo News (New York)

Distributed by Knight/Ridder Tribune News Service

August 11, 2006 Friday

SECTION: BUSINESS AND FINANCIAL NEWS

HEADLINE: New pact for Goodyear seen likely

BYLINE: Fred O. Williams, The Buffalo News, N.Y.

BODY:
Aug. 11--A new contract for Goodyear Corp., owner of the Dunlop plant in Tonawanda, seems likely now that the Steelworkers have reached an agreement with BFGoodrich, their target in pattern bargaining with the tire industry.
Goodyear-Dunlop employs about 1,200 union workers at the Tonawanda plant, which has been running on an expired contract since July 22.
However, union officials aren't predicting that the job protections and pension increases gained at Goodrich will automatically be adopted at larger Goodyear.
"That (agreement) sets the bar -- we think the other companies can follow suit, without giving anyone an unfair advantage," said William Pienta, Steelworkers District 4 director in Buffalo.
The Goodrich contract reached over the weekend protects 90 percent of jobs and bars plant closings during its three-year term. It also preserves cost-of-living raises and health care for active and retired workers. New hires will start at a reduced wage, but their progression schedule to full scale is shortened by one year.
Goodyear would only say in a statement that its negotiators are reviewing the Goodrich contract "to determine its relevance for Goodyear." The statement alluded to the difference in size of the companies, mentioning Goodrich's "three remaining plants." Akron-based Goodyear has 12 plants and 12,600 union workers, more than triple Goodrich's employment.
Goodyear opened talks in June with a proposal saying it needs a "significantly lower cost structure." The union said that accompanied a proposal for a 40 percent pay cut. Goodyear has made a profit in the past two years, following an $800 million loss in 2003.
"I think pattern bargaining is becoming much more difficult to maintain, because different companies are facing different economic factors, and the strength of unions has declined," said Arthur Wheaton, an instructor at Cornell University's School of Industrial and Labor Relations extension in Buffalo.
In the auto industry, for example, automakers are cutting different deals based on the age of their work force and their consequent overhang of future retirement benefits bills.
Negotiators will probably begin working on the specifics of a Goodyear deal early next week during meetings in Cincinnati, Steelworkers spokesman Wayne Ranick said. Union negotiators will remind the company of concessions granted in 2003, he said.
"The company is still talking about needing to make restructuring," he said. "We're saying it's not going to be entirely on our backs."

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