NATCHEZ, Miss.-Fidelity Tire Manufacturing Co. reached a tentative labor agreement March 17 with Rubber Workers Local 303 at its sole plant in Natchez-two minutes before the union's 6 p.m. strike deadline. Workers subsequently approved the three-year contract, which is retroactive to March 16, when the previous accord expired, said Leo T. Bradley, president of Local 303.
Mr. Bradley said the labor agreement contains several wage and benefits gains, including: a 25-cents-an-hour wage boost each year of the pact, pushing workers' average hourly base wage to $13.20 by 1998; the establishment of a pension plan; and a reduction in medical insurance deductibles.
Mr. Bradley said the membership believes it struck the best deal it could with Fidelity, which he said lost $800,000 last year on sales of about $97 million.
Sudbury pays CEO $2 million bonus
CLEVELAND-Jacques R. Sardas, the former Goodyear executive who is now chairman, president and CEO of Sudbury Inc., received a bonus of $1.98 million in January for having achieved certain performance targets established when he was hired in 1992.
Mr. Sardas steered Sudbury through a Chapter 11 bankruptcy reorganization and has pursued a strategy of focusing the company on metals-related businesses, which include its Iowa Mold Tooling subsidiary, a maker of bodies for tire service trucks.
The payment to Mr. Sardas nearly offset two nonrecurring gains Sudbury recorded during the third quarter of its 1996 fiscal year, which ended Feb. 29-including proceeds from the $18.3 million sale of its South Coast Terminals Inc. unit.
Including the nonrecurring items, Sudbury's third-quarter earnings jumped 27 percent to $3.83 million, despite a 3.7-percent decline in sales to $73.4 million.
Nine-month earnings likewise climbed 22.4 percent to $10.6 million, as sales edged up 1.3 percent to $221.2 million.