Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • Titan to offer free COVID-19 vaccines at Iowa facility
      Bridgestone hosts vaccination events for plant employees
      Cioffi: Will remote working be the new normal?
      Bridgestone Iowa plant navigates pandemic, demand
    • Conti adding dynamic driving simulator at German R&D center
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
      SEMA picks site in Michigan for 2nd SEMA Garage
      Online retailer CARiD.com looks to triple size of tire/wheel installer network
    • Video: Michelin looks to diversify for additional growth opportunities
      Michelin strikes supply deals with new Canadian racing series
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
      Vipal Rubber retread guarantee program hits milestone
    • Love's adds 6 Speedco servicing sites to its Travel Stop network
      Bridgestone hosts vaccination events for plant employees
      Jinyu Tire starts truck tire production at Vietnam plant
      Vipal Rubber retread guarantee program hits milestone
    • New York chipping in $3M+ toward Sumitomo factory expansion
      SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      U.S. agro-science firm gets $1M grant to research sunflower latex
    • Video: Michelin looks to diversify for additional growth opportunities
      Conti adding dynamic driving simulator at German R&D center
      Michelin strikes supply deals with new Canadian racing series
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
    • Maxxis offers discount to ChampCar competitors
      Michelin strikes supply deals with new Canadian racing series
      Bias-ply tires return to NASCAR Cup Series for Bristol dirt race
      Hankook named race tire supplier for touring car series in Europe, Japan
    • Snap-On introduces TreadReader handheld tire scanner
      Vogue Tyre introduces ‘biggest, boldest' red stripe tire
      Cooper adds Rugged Trek all-terrain to Discoverer LT/SUV tire line
      Hankook unveils Vantra specialty trailer tires
    • Bauer Built promotes pair to VP positions
      TECH Americas adds Haggerty to marketing team
      Snap-On introduces TreadReader handheld tire scanner
      Discount Tire adopts mobile tread-depth scanning system
    • Snap-On introduces TreadReader handheld tire scanner
      Marked for winter: Origin of Three-Peak Mountain Snowflake
      Post-repair message adds personal touch
      Cioffi: Will remote working be the new normal?
    • SEMA picks site in Michigan for 2nd SEMA Garage
      SEMA touts expanded Las Vegas Convention Center ahead of 2021 expo
      TIA seeking nominations for Tire Industry Hall of Fame
      SEMA survey shows resilient auto aftermarket in 2020
    • SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      Giti disputes report blasting tire maker for accepting PPP funds
      SEMA survey shows resilient auto aftermarket in 2020
    • Titan to offer free COVID-19 vaccines at Iowa facility
      Vogue Tyre introduces ‘biggest, boldest' red stripe tire
      Maxxis offers discount to ChampCar competitors
      Jinyu Tire starts truck tire production at Vietnam plant
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
      Choosing the right balancing equipment
    • Video: Demounting
      An introduction to demounting, mounting and inflation
      Staying safe when demounting and mounting tires
      Demounting Equipment
    • Video: Safety
      Introduction: Creating a culture of safety
      Protecting your people with proper hygiene
      Making friends with OSHA
    • Video: Tire Repair
      An introduction to tire repair
      How to properly patch a puncture
      Tire repair: Shining a light on visual inspections
    • Video: TPMS Service
      An introduction to TPMS service
      The importance of proper relearn procedures
      Decoding sensor data for TPMS diagnosis
    • Video: Training
      Intro: Finding and training technicians
      Shop Floor: Scholarships
      Advantages of apprentice program partnerships
    • Video:Vehicle Lifting
      An introduction to lifts and lift safety
      Recommendations for using a jack
      Jack stands for commercial tire service
    • Video: Wheel Torque
      Introduction to proper wheel installation
      Torque check and recheck recommendations
      Using torque sticks to speed service times
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
  2. News
February 04, 2020 07:42 PM

Goodyear lays off 105 at Gadsden, cuts production

Andrew Schunk, Rubber & Plastics News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    GADSDEN, Ala. — Goodyear has laid off 105 employees at its Gadsden consumer tire plant and cut the daily production ticket to between 2,000 and 5,000 tires.

    With these latest cuts, the workforce stands at 411 hourly employees, down from about 1,200 just a few months ago and from more than 1,600 a few years ago, according to Mickey Ray Williams Jr., president of United Steelworkers Local 12, which represents workers at Gadsden.

    The layoffs come just weeks after 740 hourly workers at the 90-year-old tire plant accepted buyouts as part of a realignment by Goodyear of its North American production capacity.

    The daily production "ticket" at the plant is less than a third of output of 17,000 units per day at this time last year, Mr. Williams said, and only about 15% to 20% of the 25,000-plus units per day several years ago.

    Mr. Williams said employees were given only a few days' notice before the cuts were announced Jan. 31. The layoffs initially were done on a voluntary basis, then by seniority, he added.

    "We knew they could do it, we just didn't know if they would do it," he said. "It's just really a shame that Goodyear has led employees to think that they were protected and that they would retool USW plants in North America.

    Williams

    "This company is an American icon, but instead of investing in America, they went to Mexico to exploit cheap labor," Mr. Williams said, referring to the plant Goodyear built in San Luis Potosi, Mexico.

    Goodyear said in a Feb. 4 statement that it is adjusting its staffing levels at Gadsden to accommodate the reduced production schedule.

    "The Goodyear-Gadsden plant continues to rightsize staffing levels, including hourly and salary positions, to accommodate an adjusted production schedule, following recent voluntary buyouts for union associates," a spokesperson for Goodyear said.

    Those who were laid off will get severance pay and benefits, Williams said, as negotiated in the USW contract.

    "As part of our labor agreement through 2022, Goodyear told us that no plants would be closed," Mr. Williams said. "And they told us they would invest in American plants. Goodyear has not done that in Gadsden."

    Goodyear has said it expects its revised U.S. manufacturing strategy — of which the Gadsden buyout and layoffs are a part — to yield about $30 million in 2020 in improved operating income in its Americas' segment, and estimates $40 million annually thereafter, according to an 8-K/A filing with the Securities and Exchange Commission related to the company's buyout expenses.

    The move reportedly mirrors a similar strategy employed by the tire maker at two locations in Germany, where the company is looking to generate an earnings improvement of between $60 million and $70 million by 2022, while cutting up to 1,100 jobs between the two factories there.

    In 2019, Goodyear made its first round of cuts at the Gadsden plant, laying off 170 employees in connection with a change in the plant's work cycle from seven days a week to five days a week, according to a union spokesperson.

    Mr. Williams expressed continued frustration with the domestic effect of Goodyear's plant in San Luis Potosi, Mexico, which opened in 2017, as that plant continues to operate more cheaply, pushing tires into the American market and taking away jobs.

    "They keep pumping in tires from Mexico," he said, adding that operational costs in Mexico are significantly less than in North America.

    "Goodyear has been here since 1929, and they they have been a staple in the community. But it's a two-way street. We've been here for them as well."

    Mr. Williams also addressed what he said are health concerns from employees at the Gadsden plant, saying Goodyear has not properly mitigated the toxic powder "lamp black," an additive in tire and paint production, from the grounds outside the facility.

    "The question is, 'How are you going to clean this up?' " Mr. Williams asked. "This stuff is very harmful to people, and they've put no money into the clean up efforts."

    Goodyear, in a Feb. 4 email, wrote that it is committed to the highest standards for operational excellence, and “meeting or exceeding the requirements of all applicable environmental laws and regulations, including the Alabama Department of Environmental Management and the United States Environmental Protection Agency regulations at our tire plant in Gadsden, Ala.”

    Goodyear has said its strategy is to strengthen its manufacturing footprint by curtailing production of certain tires for declining, less profitable segments of the tire market. The Gadsden plant produces the Assurance passenger tire for cars and light trucks, Mr. Williams said.

    The layoffs and buyouts at Gadsden are in contrast to the situation at Goodyear's plant in Fayetteville, N.C., where the company disclosed plans late in 2019 to invest up to $180 million to expand capacity for larger-rim diameter passenger tires.

    The Fayetteville plant is rated at 40,000 units a day with 2,900 employees, according to Tire Business' Global Tire Report.

    "For the rest of the workers on the floor here in Gadsden, we want to work, we are here to work," Mr. Williams said. "We have families who depend on us, and this community depends on us.

    "There is nothing preventing Goodyear from presenting a decent ticket here, there is nothing stopping Goodyear from hiring folks here."

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award