CINCINNATI (May 13, 2003) — The United Steelworkers of America's negotiating committee has rejected Goodyear's first formal proposal for a new three-year contract.
The three-year offer — submitted May 9 — called for concessions in several areas, including wages, pension, subcontracting, cost-of-living allowances and retiree medical benefits, a USWA spokesman said. The plan also asked for a 400-percent increase in drug co-pays for active members and a 600-percent increase for retirees, according to a union Web site.
The proposal calls for $925 million in cuts over the life of the three-year pact, and it did not address the union's primary concerns in negotiations—job security and investments in North American tire and rubber plants, the spokesman said.
Goodyear believes it was a fair, good-faith offer, a company spokesman said, and is urging its unionized employees to seek a complete explanation of the proposal.
Contract discussions—which began March 13—are continuing in Cincinnati. Goodyear was chosen as the target company for 2003 tire industry contract negotiations April 7.