'Good contract': USW pleased with Titan tire pact

BRYAN, Ohio — "The fight is always about the people."

So states the motto at United Steelworkers (USW) Local 890L on a sign outside the local chapter, a group of about 115 tire manufacturing workers for Titan International Inc. in a city of 8,500 in the northwest corner of the state.

Rather than a fight, diplomacy and compromise was the theme this time around for the workers in Bryan, as well as about 320 USW members in Des Moines, Iowa (Local 164L), and those at a third chapter in Freeport, Ill. (Local 745). The USW locals on Jan. 12 ratified three-year contracts with Titan.

The three separate contracts, covering more than 800 Titan workers, run from Nov. 16, 2021, to Nov. 16, 2024, and feature gains in wages and pensions, although health-care benefits remain status quo.

"Overall it's a good contract," Rick Hughart, president of Local 890L, told Rubber News, a sister publication of Tire Business.

"It's not phenomenal, as some memberships have pie-in-the-sky dreams. We'd hoped for better raises, we didn't get that.

"But all in all, people for the most part are pleased with it. It's a contract that will benefit younger guys in the long run rather than us old guys. But you gotta start somewhere."

Based in West Chicago, Ill., Titan International (comprising both Titan and Goodyear farm tire brands), offers wheels, tires and undercarriage products for a wide variety of off-the-road equipment.

"I think we feel like it's a mutually beneficial agreement. ... There are things in it that both sides were looking for," a Titan International spokesman said. "There was compromise and it's a good contract for both sides.

"It's a unique environment out there right now and we recognize there are things going on elsewhere, in regard to labor markets in general and the worker shortages."

Titan President and CEO Paul Reitz said he appreciated working with the leadership of the USW.

"We look forward to moving ahead under these contracts and appreciate working with the leadership of all our unions to finalize a package that is good for all involved," he said. "Titan's success in providing our customers with market-leading products is based on the strength of our 'One Titan' team, especially the tremendous people in our plants that build them."

Matthew Cooper, chief steward at Local 164L in Des Moines, said he and the other 319 USW members there "pretty much got it all."

"We were pretty happy with the terms, I mean I voted 'yes' on it," Cooper said. "We were hoping for better health insurance (terms) but the percentages at least remained the same."

Hughart, who has been with Titan and the USW for 32 years, said this contract marked only the second time he has voted "yes" on one. He helped negotiate the last contract for the USW chapter, and ultimately voted "no" on it, he said.

"We always want more for our members, but we saw increases in pension and wages, and got them to hold on to the current percentages on insurance — that stayed the same," Hughart said.

"And like so many other companies have done in the last five or 10 years, we got most of the pay tiers taken away — which do not work."

Hughart added that there were small improvements in overtime terms, "but not as much as people would have liked."

"Overall I think there are some good improvements ... there is an incentive program that's new as well," he said.

The bonus program is paid quarterly to workers if the plant meets certain production benchmarks.

"It's based on the overall performance of the plant. ... We had long discussions over incentive programs and thought the salaried people would torpedo this—but the plant said we are putting salaried workers in the program as well, giving them a vested interest," Hughart said.

He added that there were gains in vacation time as well, though there were no specific terms of the contract that were agreed to based on effects of the pandemic.

"I had a brand new board (of directors) this time around, and I am confident that they got their feet wet. When I slide into (the) sunset, I hope to leave membership in good hands," Hughart said.

Titan's Reitz thanked employees for their hard work during a challenging last year-and-a-half, and said the union contracts "position Titan for growth."

"The benefits from these contracts ... reflect our appreciation for the commitment and dedication of our employees during the challenging times in recent years," he said. "The new contracts include incentive plans that provide financial rewards for achieving mutually agreed-to plant performance improvements."

In its recent third quarter report released in late November, Titan reported sales of $450.4 million, a $145.6 million increase over the comparable 2020 quarter. Titan said they represented the strongest third-quarter results since 2013.

Adjusted EBITDA was $35.1 million as compared to $14.2 million in the third quarter of 2020, a $21 million year-over-year improvement. Full-year adjusted EBITDA is estimated to finish at more than $130 million for the off-road tire and wheel manufacturer.