Goodyear, Steelworkers Begin Contract Talks

Goodyear froze its U.S. salaried pension plans on Dec. 31 and highlighted the issue on its contract-related Web site, stating that it "has experienced periods of declines in interest rates and pension asset values," which has left its pension plans "significantly underfunded."

Kevin Johnsen, a USW contract coordinator, said job security is a priority for the Pittsburgh-based union.

"We're interested in getting a fair and equitable contract. Certainly we'd like economic security, but we also want job security. We want to insure that all of our members continue to have jobs," he said by phone from Cincinnati.

John B. Russo, a labor studies professor at the Youngstown State University business school, said the recession and upheaval in the auto industry would be on the minds of contractor negotiators.

"It's going to be an issue in terms of the negotiations, there's no question about it. Any union that's negotiating in the current economic climate is facing that backdrop," he said.

Steelworkers struck Goodyear for three months in 2006 in a walkout that ended when the two agreed to create an independent health-care fund to pay for union retiree health benefits. Goodyear agreed to a one-time payment of $1 billion into the fund.