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Goodyear strikes

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BY RICHARD PIERSOL / Lincoln Journal Star

Friday, Oct 06, 2006 - 09:10:33 am CDT

Hundreds of people streamed out of Lincoln’s Goodyear plant in Havelock on Thursday toward an uncertain future.

Thousands represented by the United Steelworkers at 16 Goodyear Tire & Rubber Co. plants in 10 states and Canada — including more than 500 workers in Lincoln — went on strike at midday after the company and union negotiators failed to agree on a new labor contract.

“We need a fair agreement,” said Sally Edwards of Lincoln, a union leader with 39 years of service at the plant who joined those who walked off the job. 

Story Photo
Rod Vlcek puts out picket signs just before noon Thursday outside of the Goodyear plant. (Dior Azcuy)

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“We need to protect our plants, protect our retirees ... people put in 30 years here and expect their benefits to be protected.”

The old contract expired July 22 and both sides agreed to an indefinite day-to-day extension. The union gave 72 hours of notice on Monday and said it would terminate the contract if an agreement wasn’t reached.

At noon Thursday, workers walked out of the plant on North 56th Street, moments after blue-shirted executive committee members of United Steelworkers Local 286 brought news that no agreement had been made from the union office a block away on Seward Street.

Within minutes, a stream of cars began leaving the plant parking lot.

Some employees, signs in hand, began picketing.

“It’s very hard to go in there and tell people to come out,” said Gary Schaefer, vice president of Local 286, which represents 560 people who work at the Lincoln belt plant. “It’s kind of emotional … life-changing.”

He hoped the strike will not last long, he said. But if it does, he said he had no doubts his members will stick to their commitment.

“The resolve is there,” he said.

“Let the (negotiators) take a break, get their thoughts together and get back to the table,” Schaefer said hopefully.  “Put some new proposals on the table.”

The prime issue of the strike is job protection and the possibility of closing plants in Gadsden, Ala., and Tyler, Texas, both of which were reported to have been left off the company’s last proposal offering unspecified protection of 10 other plants in the United States.

The Lincoln plant already is protected from closing under an earlier agreement that guaranteed at least 325 union jobs at the plant through July 2009.

The company said the union rejected a comprehensive proposal that would improve Goodyear’s competitive position while maintaining “substantial commitment” to manufacturing in North America.

“Negotiations stalled after the union’s proposals to Goodyear did not include key items found in their agreements with competitors,” the company said.

It did not specify those items.

“We simply cannot accept a contract that knowingly creates a competitive disadvantage versus our foreign-owned competition and increases our cost disadvantage vs. imports,” said Jim Allen, Goodyear’s chief negotiator.  Goodyear did not elaborate on that disadvantage.

BFGoodrich, owned by Michelin, a French company, settled with the Steelworkers earlier this year.

Goodyear said its final offer to the union, delivered Thursday morning, included provisions for job security and significant investments for union-represented plants, a company-funded plan to secure retiree medical benefits and restoration of prior pension service credit.

Goodyear also has non-union plants, including one in Norfolk.

“We remain willing to continue to bargain with the Steelworkers,” Allen said. “In the meantime we have implemented our strike contingency plans at the affected facilities and are working to minimize impact on our customers.”

 The nature of those contingency plans was not clear, but union officials said they had no reason to believe the company would try to bring in strike breakers.

Goodyear employees last went on strike in 1997 for three weeks. In 1976, they were out for four months.

This confrontation appears to some union members to be as serious as it could be.

“This isn’t going to be a four-week job,” said Bill Lafler, who has 19½ years at the plant, and was off work, anyway. “I tore my knee out in there,” he said. “Now I don’t have a job. What am I gonna do?

“I don’t think we’ll get back in.”

Other issues less prominent than plant closings and job protection are benefits, like health insurance for retirees, which union members said the company is trying to erode.

“We gave a lot of concessions while I was still working,” said Larry Holle of Lincoln, who retired from Goodyear six years ago after almost 40 years. “I think we ought to be protected.”

He’s committed to the union, its active workers and the strike. “I paid dues all those years, we need to stand behind them.

Steve Randall of Palmyra, with 33 years of service, fears for his own future.

“I’m about ready to retire,” he said. “If I don’t have health benefits I can’t retire.” 

Another issue still hanging is one brought by the company to Local 286 months ago: reclassification of employees in a way that would reduce some wages.

The local plant is a shadow of what it once was, when it employed almost 2,000 people.  The employee count now is down about 300 from what it was in 2004.

“The majority of people here, not all of them, have enough seniority, they went through the 1976 strike, 124 days, so they know what the potential is for this one,” Schaefer said Thursday, before the strike started. “These people know what to expect, how to handle themselves, what’s going to be going on.”

Resentment has mounted during these negotiations, which started in earnest in May, because union members have sacrificed before.

“(Goodyear) wanted to file bankruptcy in 2003,” Schaefer said.  “Our membership stopped them and made concessions. It’s totally unfair, what they’re doing.”

Goodyear has been reviving its fortunes in recent years as it went on a cost-cutting campaign. In 2004, it scored its first profitable full year since 2000.

Edwards, who works in the union office, blamed  the latest conflict on the people running Goodyear.

“We’re dealing with a different type of management,” she said.  “People we dealt with before had compassion. Now it’s all greed. We just want a fair agreement.”

As people walked away from the plant Thursday, Lafler warned aloud of the necessity for strikers to clock out if they expect to get paid for the time they worked.

“If you don’t,” he said, “you quit.”

Reach Dick Piersol at 473-7241 or dpiersol@journalstar.com. The Associated Press contributed to this report.

Editor's note: An earlier version of this story and its comments can be found here.

Plants on strike

North American Tire:

Akron, Ohio; Buffalo, N.Y.; Danville, Va.; Fayetteville, N.C.; Gadsden, Ala.; Topeka, Kan.; Tyler, Texas; Union City, Tenn.

 Engineered Products: 

Lincoln, Neb.; Marysville, Ohio; St. Marys, Ohio; Sun Prairie, Wis.

Canada:

Collingwood, Ontario; Owen Sound, Ontario; Toronto Logistics Center; Toronto Commercial/Retread

What’s the issue?

The key sticking point apparently is Goodyear’s desire to close the plants in Tyler Texas, and Gadsden, Ala.

Other issues: health insurance costs for workers and retirees, pensions and wages.


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JMR wrote on October 6, 2006 7:48 am:
" Protections matter, so does the message strikers send Congress and other elected representatives who should be standing with ethical and moral duty. It is sad Fortenberry did not champion lower healthcare costs so the company could more quickly say "yes we will assist you in healthcare". Fortenberry is too busy in a page scandel that has immoral conduct of House members under scrutiny, Congress has problems taking care of its own members. No wonder Congress and Fortenberry make government look weak and irrelevant. "

Tom wrote on October 6, 2006 8:30 am:
" So does anyone really expect once they retire to have the company who they work for pay their spouses health benefits after they die? So why do the union employees at Goodyear think they are better than anyone else? Why does my Grandmother have full health care from Goodyear without ever working a day there? My Grandfather has been gone for 15 years and she is still getting his full benefits. I love her dearly but I also think that is a ridicules thing to expect. My recommendation to Goodyear is to fire every one of the strikers and replace them with non union people who want to work for a good wage and not have to pay for the union bosses to live in their mansions. "

DZ wrote on October 6, 2006 8:33 am:
" Unions are a legitimatr voice of labor. Yet during this time of excessive healthcare costs, should negotiations be multilateral? Government has, like it or not, played a role in globalization and became a party to the craziness and chaos foreign policy has caused. Erosion of moral obligation of society to care for the vulnerable is a cornerstone of the civilized world. But companies who have been put under excessive pressures due to actions of government have a force outside of the marketplace working against them, their employees (present and past). Government has not taken steps to fortify social security. Senators Hagel and Nelson have been less than stellar in making social security a priority. Goodyear employees across the nation need a voice in government to support their economic security, it is a national concern and new approaches are needed. We cannot continue down a ruinous road and leave workers behind...that would be cruel and unusual punishment when factories have supported the nation through wars, through times when communities needed economic pillars. "

Central Nebraska Taxpayer wrote on October 6, 2006 8:46 am:
" Isn't it time to call a special session of the legislature to approve some new business incentives for Goodyear....so they can have enough resources to pay the union workers. Oops! I forgot. We have already done that, but Goodyear made big layoffs in the Lincoln plant inspite of receiving incentives....incentives paid for by taxpayers of Nebraska. "

Clarence wrote on October 6, 2006 9:57 am:
" Incentives and subsidies already help farmers, and the public pays teachers and city-state-federal workers. That aggregate population might be the second or third "largest city" in Nebraska. With thousands of Nebraskans already having healthcare premiums paid for by citizens, the addition of Goodyear employees would be insignificant. Whether a member of the city council, state legislator or congressional representative...it is time to put these employees and retirees ino perspective as they and Goodyear have been an economic partner for generations. "

Tired of Jealous People wrote on October 6, 2006 10:07 am:
" Tom, if your grandmother was only a homemaker and unemployed, she should also not be entitled to any Social Security survivor benefits from your grandfather's employment history? She should not receive anything, just live on what's remaining of your grandfather's actual estate? Guess she should have been working so she'd have her own pension. Hope your wife works a long time, Tom. "

Candi wrote on October 6, 2006 10:33 am:
" Consider how taxes pay for a couple with 2 children in Lincoln when the husband is employed by the school system, the wife by the state and two children in LPS. The parents have a salry, paid by the public costing over $60,000 excluding health insurance. Each child costs taxpayeers $16,000. Without health insurance costs, that family represents a tax burden of $92,000+. It takes outside resources to pay for costs like this, Lincoln isn't a perpetual money machine, Goodyear brings in revenue from outside the system and without credability or integrity of that economic partner...teachers and state employees live in a socialist model with no economic legs. "

Hattie wrote on October 6, 2006 11:10 am:
" Unions stand up and smell the health insurance programs. Recently the City of Lincoln had some issues with Health insurance, but they certainly don't get the city to pay after retirement. They should pay due to the low wages during the year . Maybe we as a city should have Jon Camp negotiate for your union. At least he dosent' know what is going on when he opens his mouth. Maybe Robyn E. she would be a staunch advocate of keeping your union going. Goodyear is a mainstay of Lincoln NE. Stay on strike until the idiots in the new management team find out what really matters. Wait until they get pink slips for getting overpaid. "

Well wrote on October 6, 2006 11:56 am:
" The deal used to be that since the government of the U.S. does not provide healthcare like in every other Western industrialized nation, the employers took care of employees and their families. That was the bargain. It was good for employers, and remains good for employers to some extent, because it keeps employees bound to the employer and you and your family were dependent upon them for their healthcare. Sorta makes you take a bit more b.s. from the boss with that kind of weight hanging over the relationship. Why do you reflexively take the position that your grandmother does not deserve to heave good healthcare? It was one of the deals your grandfather made with his employer, and it was likely a great comfort to many workers to know that if they passed their spouses would still have health coverage? You're arguing that's a bad thing? What are ya heartless stockholder, or just a Republican? If employers don't want to cover health care in the U.S. they should lobby to have it covered by the federal government like it is in other countries. The fact that they don't only means they realize that, for all their complaining, they benefit from the current system of healthcare peonage. Godspeed Goodyear workers; best of luck to all of you and your families. "

Teacher Benefits wrote on October 6, 2006 12:15 pm:
" As a teacher LPS pays $378.00 of my insurance premium each month. I have an additional $656.00 taken out of my paycheck every month to pay the rest of the premium for ins. provided through LPS. That's makes a grand total of $7,872.00 I will be paying out for insurance this year, and why I will be looking for other insurance coverage next year. Just thought I would put that out there for those that think LPS benefits are the greatest thing since sliced bread. "

Amy wrote on October 6, 2006 12:53 pm:
" Those wage-earners also pay taxes. That's like paying their own wages. You talk about the cost of the children, that holds true for everyone including those that don't work. "

lindsey wrote on October 6, 2006 1:17 pm:
" Organized labor is the last line in society's struggle against big business and the unhealthy relationship between capitalism and government. Let's hope the Steelworkers are successful and get what Goodyear promised them. "

DAVE C wrote on October 6, 2006 1:20 pm:
" My guess is they will have to keep on walking, cause the company is'nt going to stay around in this crappy business climate. Maybe some members of the city council needs some more lawn mowers. "

Kim wrote on October 6, 2006 1:45 pm:
" There is a bit of silliness in not knowing the difference between wages earned by production and sale of a product and a service that derives income from taxes. Without corporations and businesses who create or bring in dollars from other staes or countries, a welfare state would nearly exist in Nebraska. One might argue propert taxpayers suffer a double tax because the taxes they pay for teachers and government employees is again taxed with a secondary income tax, maybe Goodyear and her workers should get a tax credit for their extra contribution to society? "

CarolS wrote on October 6, 2006 1:55 pm:
" Teacher Benefits points out part of the reason, excessive insurance costs threaten the economic security of retirees who already are in a regressive retirement situation as taxes increase, healthcare costs increase and inflations exceeds income. Both Goodyear and retirees have been placed in at increased risks when the Banking Committee/Treasury didn't fortify Medicare and Social Security. Congress and Bush are important facets of this strike, they are just hidden as shadowy players. "

ted wrote on October 6, 2006 3:13 pm:
" Do any of you know how much taxes other countries charge to provide government health care? In England the sales tax is 17%, gas is taxed at $4.00 per gallon, plus high income taxes, up to 50% in Sweden. Do you really think that gov't health care is free? I was forced to join a union in Calif. $500 dues per year, no pay raises to support a bunch of union official leaches. What work do they do? The Goodyear strikers are being used by the union. "

hard worker wrote on October 6, 2006 3:47 pm:
" i just like to now why the goodyear workers are so mad i work for a plant right here in lincoln working just as hard as they do maybe harder and i pay out the butt for my ins and makeing 9.50 hr with two kids at home i would like to make what they make an hour and i would not have one complaint about it. One more thing for get the UNION. "

union Proud wrote on October 6, 2006 3:54 pm:
" Regarding the crappy business climate,let Goodyear go, but what happens to the community and the dollars that Goodyear workers put in this city and state? I know for a fact that the union workers give more of their time and talent to this city in helping non-profits , both finiacilly and volunteering then most of the city. The union is always there to help with children's needs in this community, to helping with food drives, to donating blood. So next time our city needs something, maybe the union should just back off. I am proud to say that I feel like I make Lincoln a better place to live. Thanks to those union dollars !!! "

brad. wrote on October 6, 2006 4:31 pm:
" Hey teacher I pay 100% of my insurance + The half of yours you don't pay pluss my taxes. "

whatever wrote on October 6, 2006 5:34 pm:
" Ted, Sweden has one of the highest standards of living in the world. Per capita income is higher than the US, plus it has a business climate that is more favorable than that of the US. The idea that government provided healthcare drives down the economy is false. It's high time the United States take a stand like the rest of the industrialized world and provide healthcare to everyone. And as far as high taxes go, well welcome to Nebraska, it just doesn't get any better than this. "