AKRON—Goodyear has agreed to pay some 320 former employees at its Goodyear Dunlop Tires Hellas S.a.i.c. subsidiary approximately $32 million in salaries in arrears, interest and related payroll taxes.
The ruling covers a 5½-year period following the 1996 closing of Goodyear's tire plant in Salonika, according to information in the firm's 2014 10K filing with the Securities and Exchange Commission.
Goodyear's decision to settle the matter came after Greek courts issued judgments last year affirming Goodyear Dunlop Greece's liability to pay salaries in arrears, Goodyear said in earlier 10Q quarterly filings.
The Akron-based tire maker said it made payments totaling $20 million during the fourth quarter and will pay out the remaining $12 million in installments through 2016.
In addition, Goodyear Dunlop Greece may be required to pay social security contributions of approximately $13 million related to any salaries in arrears.
Goodyear closed the plant in July 1996, citing its small size and high cost of operations. The plant opened in 1967 and employed 500 at its peak, the company said in 1996.
Goodyear said it did not expect this matter to materially affect its future results of operations, financial position or cash flows.