AKRON (Sept. 25, 2008) -– Goodyear is removing from its budget the cost of health care benefits for retirees after no appeals were filed against a court order allowing the firm to establish a Voluntary Employees' Beneficiary Association trust.
The 30-day appeal period has expired, the company said. The VEBA — created via negotiations between the United Steelworkers union and the company — will provide health care benefits for Goodyear's current and future USW retirees. Goodyear funded the VEBA with $1 billion.
The company's liability for such costs at the end of 2007 was about $1.2 billion.