Update on Goodyear Tire strike
The latest news out of Detroit is that automakers might run into some tire shortages should the recent walkout by Goodyear workers continue for more than a few weeks. Adding to that problem was yesterday's news of an additional 300 hourly workers being laid off at a North Carolina plant, because of the strike. This plant was not one of those on strike, but they produce wire used in the manufacturing of tires at other affected plants. Goodyear plans to bring these workers back when the strikers return. As we told you last week, 15,000 Goodyear Tire & Rubber Co. union workers went on strike after their contract was terminated. The strike has affected 16 North American plants, but Chrysler and GM have both said they had stockpiled a supply in anticipation of the strike. Non-union plants and salaried workers are being used to maintain at least some production. GM has said that it has a 30-day supply of tires on hand, but to put that in perspective, they go through 8 million Goodyear tires every year. Every North American automaker currently uses Goodyear tires.
No new talks are scheduled in this ongoing saga. Goodyear had proposed contract changes that would make the tire manufacturer more competitive by lowering its costs, particularly the costs related to maintaining such a large workforce. Recent notable sore spots like health care and pension funding were at the top of the list of proposed cuts. Worker productivity was sighted in the contract proposals, and the union countered that substantial cuts were already made to wages and other worker's benefits in 2003, and that further reductions were just plain unacceptable. We'll keep you updated on who blinks first.
[Sources: Reuters, Automotive News]
Reader Comments (Page 1 of 1)
Paqza 10:34AM (10/12/2006)
The answer is simple. Go to Continental/Michelin/Bridgestone. Not American, you say? Well, apparently we have tried that and it makes us non-competitive. What the hell are we supposed to do when we let us down? Go foreign, I guess. And I am not just specifying the workers. The contract termination likely affected many lives, especially when it comes to healthcare and so on. However, it's pretty obvious what unions are doing here. They have too much power and force businesses to pay more for labor they could...well...elsewhere for cheaper. In the long run, doesn't that sound like it would *cost* more jobs in the long run?
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Paul 11:26AM (10/12/2006)
these kinds of low tech products should be made in china anyway. they can make tires cheaper and more efficiently. fires these unions and move production out of the usa where it belongs. cheap consumer goods is where its at.
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Richard Warren 11:52AM (10/12/2006)
Hey Paul,
When we take your job and replace drive up window help with an automat, let us know how you feel about your job loss. Oh, forgot, the Asian owner fired your ass.
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Paul 11:56AM (10/12/2006)
now richard dont get xenopobic
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Shawn 1:32PM (10/12/2006)
Chinese drive up window... "...And then?" LOL
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MadDetroier 2:53PM (10/12/2006)
I know how my conversation would go, right before I roared off in my 84 Crown Vic...
"Hey Chinaman, I'll take a number two, with a side of sweet and sour foot up your ass"
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MadDetroier 3:58PM (10/12/2006)
American debt... made in china
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Eric Sposito 9:50AM (10/16/2006)
It seems to me that everyone, in the midst of buying and consuming as much as they can, forget that once upon a time citizens in the US were able to go to the doctor, raise a family and send those kids to school on one job. Now it takes two jobs to even have a chance to do those things. While all that was going on corporations were shifting their manufacturing operations from one third world country to the next, looking for the lowest labor costs. No one thinks, for one second, of the ramifications of consumerism. When everyone makes 12 dollars an hour and no one can afford to go to the doctor what kind of country will we be living in? It will be a country of very wealthy people making up less than one percent of the population, 20 percent that can be considered sucessfull and the rest struggling to survive with no hope of retirment or decent access to health care and education for their children. If this is the country that you want to live in then go right ahead and support every corporate effort to outsource wages, jobs and benefits. I will never acquiesce to the blatent attempts of corporation to destroy the middle class.
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Dale 7:31PM (10/19/2006)
I am one of the Goodyear Union workers on strike.First of all, for Paqza, Levi jeans has makes all of their jeans out of the US now, the reason? They say it is cheaper to make, so to be competitive, they moved their factories to China, India...etc. But the price of Levi jeans has not decreased?
Who is getting the money?
Also for Paul, Low tech? The next time you are driving down a highway, and your tire blows out. I hope you dont get hurt. There is alot more involved in tire production that just putting rubber into the shape of a tire. It has already been proven that these "low tech" products, as you call them... When produced in some of these under paid countries, Quality wise, are not as good. So buy those chinese tires, and cross your fingers.
Oh, we gave up alot of stuff on our last contract with GoodYear, but the company was in debt. And two years later, the Ceo and 5 execs gave themselves a 35 million dollor bonus? Now the company is not in debt, just the opposite. So we should give up more, so the higher ups can get more? You explain that to me.
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ann 11:11AM (10/28/2006)
Goodyear in Collingwood has sunk really LOW not only are all their salaried people and some from other plants being FORCED to work 12 hour shifts now they are bringing in SCABS to do our jobs.COME ON GOODYEAR get back to the table and talk A.B.
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jackie 9:27PM (10/28/2006)
I'm also a striker at Goodyear and I am here to say that these scabs can come and try to do the job I do, but who will train them? Several of Goodyear Managements have been seriously injured on these so called "low tech" machines. You come and try to work like we do, we bust our ass to make a quality product for the American people to be safe and secure, have a scab or chinese make our product and be assured of another horrific incidents of blown out tires that killed 100s. If that is what our country wants I really feel sorry for you, we make a product here to sell here, goodyear already has china involved in their tire productions. They dont sell any cheaper here, just the same as when americans made them, if we all take a job at $7 an hour and no insurance, who will buy these "low tech" products? We won't be able to afford them!
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Jay 11:17AM (11/02/2006)
I support the strikers...Ross Perot was right....that big sucking sound is jobs leaving this country, going overseas..at the rate things are going, WE are going to be a third world country before long. When management is giving itself large bonuses, and golden parachutes, etc., and turn around and demand concessions from the workers, something is wrong. The workers have made major concessions, and now more is being demanded, even though Goodyear is showing a healthy profit. Greed has taken over management. It's a shame, for the workers, the ones who make the company what it is, are the ones who suffer. The only reason I found this sight, I've been looking for Fortera Triple Tred tires for my van....they are all out of stock in my area (Maryland)..so, I was checking on the status of the strike. I don't want my tires made by some unskilled scab or management person, or by some 3rd rate factory in China. I buy American made as much as possible. I've never owned a foreign car, and never will. I want my American made, by union labor, Goodyear tires. Management, get your head out of your ass, and give the workers the respect they have earned and deserve. If you need to close plants, close them in some other country. American workers should come first and foremost. That's what I, an American consumer, have to say.
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sgross 11:38AM (11/03/2006)
Go to college and get a degree and be someone intelligent who can add value to a company. I can hire a monkey to turn a switch on and run a machine.
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Jay Gross 2:50PM (11/03/2006)
Well, why don't we have that monkey come right over and do your job for you??
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Jackie 12:14AM (11/05/2006)
well to actually get a job with goodyear you have a have a 2 year degree in college to even be looked at for a job, Im not a monkey i have an education and a very good one at that. Not many jobs you find can pay what we get. it doesnt take a skilled person to push a pencil around it takes skill to build a tire, i invite you when this is over to come and see what it really takes to make one.
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JimS 8:08PM (11/06/2006)
I just purchased four Goodyear; Assurance Comfortread’s to replace the Michelin’s on my van. These tires (in my size) are out of stock over the whole country but I paid for them in order to take advantage of a rebate offer that expired Oct. 28th. I hope the strike doesn’t go too long as the tires on my van are just about worn out. I am willing to wait because I think these were the best tires available (and the price) in the size I need. As for making these tires in China, I don’t think Goodyear would put an 80,000 mile warranty on them if they weren’t made in the USA.
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