AKRON, Ohio — Goodyear has ratified a deal with its union that will help the company achieve substantial cost savings, the company has reported.
The contract was ratified today with the United Sweetworkers union, representing workers at 12 Goodyear plants in the US. Goodyear says the new labour deal will help it realize savings of $610 million through the three-year deal, along with $300 million in ongoing savings.
“Reaching agreement on a contract that competitively positions Goodyear for the future is a huge achievement for everyone involved in the negotiation process,” said Robert J. Keegan, chairman and chief executive officer. “The end result is Goodyear will be a stronger company, a stronger employer and a stronger overall global competitor.”
Goodyear officials said the new deal gives Goodyear the ability to reduce excess high-cost manufacturing capacity, lower legacy costs, improve productivity and source product globally.
The tire manufacturer will be investing more than $500 million into its US facilities over the next three years to make them more efficient and productive.
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