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]