Goodyear, Steelworkers Begin Contract Talks

THOMAS J. SHEERAN

CLEVELAND (AP) — Goodyear Tire & Rubber Co. and the United Steelworkers of America opened national contract talks Monday with the recession as a backdrop and memories of a three-month strike in 2006 still fresh.

The three-year contract covering about 10,300 Steelworkers at seven Goodyear plants in the U.S. expires July 18.

The Steelworkers said the union's goal was improved pay and benefits but acknowledged that job security would overshadow other issues in contract talks in Cincinnati covering workers in Akron; Buffalo, N.Y.; Danville, Va.; Fayetteville, N.C.; Gadsden, Ala.; Topeka, Kan., and Union City, Tenn.

The company made it clear in a posting on its Web site that controlling costs is a key focus.

"Goodyear's goal for its North American Tire manufacturing operations is to be competitive within North America and with the rest of the world," the company said. The Akron-based company said it wants to focus on improved productivity and flexibility and rising health-care and pension costs.

Bob Keegan, Goodyear's chief executive, has said the company plans to cut 5,000 jobs globally this year, including 3,800 cuts made through March. Goodyear has about 71,000 employees worldwide, with 30,000 in the United States.