At 1 PM EST yesterday, the United Steelworkers union terminated its contract with Goodyear, causing 15,000 employees to walk off the job and subsequently shut down 16 plants in the U.S. and Canada. The strike came after negotiations between the two parties had stalled after several months of talks.
Goodyear's contract proposal aimed to make the tire manufacturer more competitive in the global marketplace by reducing the costs associated with maintaining a large workforce. Most of the proposed cuts were focused on health care and pension spending, with an emphasis on worker productivity.

The union cited that substantial cuts were made to wages and other worker's benefits in 2003, and that further reductions were unacceptable.

In the meantime, Goodyear has enacted a backup plan that will reduce the harmful effects of the strike on its customers.

[Source: CNN Money]

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