By The Associated Press
Saturday, August 29, 2009
The Steelworkers union reported progress in contract talks with Goodyear Tire & Rubber Co. as both sides negotiated into the evening with a midnight Saturday deadline looming.
Wayne Ranick, a spokesman for the United Steelworkers of America, said Saturday the talks are progressing in Cincinnati, where negotiations have been under way since June.
The contract was to expire at midnight for about 10,300 employees at seven plants in Ohio, New York, Virginia, North Carolina, Alabama, Kansas and Tennessee. The expiration deadline has been extended twice.
Goodyear, the biggest U.S.-based tiremaker and third largest globally, operates more than 60 plants in 25 countries and has nearly 70,000 employees.
The union said the talks are focused on job security, keeping plants open and health care costs.
Ranick has said that affected locals have voted overwhelmingly to authorize a strike if necessary, but the company and union were mindful of the economy.
Goodyear reported last month that it lost $221 million in the second quarter as U.S. auto industry upheaval and the global recession cut sales 25 percent from a year ago.
The loss excluding one-time items was half Wall Street's expectations, however, and Goodyear said it was seeing early indications of an economic turnaround.
The company launched 19 new products in the second quarter, cut costs by another $200 million and eliminated 1,700 jobs. Added to 3,800 first-quarter staff cuts, the company has passed its full-year goal of 5,000.