AKRON, Ohio, — After a three-month strike by nearly 13,000 workers, North America’s largest tiremaker will roll out rubber at full capacity again.

Goodyear Tire & Rubber Company and the United Steelworkers union announced late last week the two sides had ratified a new contract, ending a 12-week labor standoff. The deal also gives the company the greenlight to close its Tyler, Tex. plant after December 31, 2007, eliminating 1,100 jobs.

Workers at Canadian Goodyear plants in Toronto, Collingwood and Owen Sound, Ont., where about 400 union members are striking four plants, were not part of the deal, but voted on a separate company proposal on Friday.

The London Free Press reports about 270 employees in Collingwood and Owen Sound voted in favor of a new three-year contract, which does not include wage or benefit concessions, but does provide plant security.

Goodyear says it can save up to $610 million in cost savings over its term and $300 million a year in ongoing savings. The U.S. “master” contract gives the company the ability to reduce excess high-cost manufacturing capacity, lower legacy costs, improve productivity and source product globally.

Goodyear has insisted it needed to trim spending because of higher materials costs and competition from rivals building tires in low-cost countries.
The agreement also includes investment of $550 million over three years in the company’s facilities to make them more efficient and productive in manufacturing high-value-added branded products.

Goodyear’s North American tire output was reportedly cut by half during the strike, and the company said the walkout was costing it $35 million a week. Goodyear said it was meeting demand with built-up inventory and by having managers and temporary workers build tires.