USW makes trio of just-in-time labor contract deals with major tire makers

PITTSBURGH—Eleventh-hour, tentative contract agreements have been reached between the United Steelworkers and two major tire manufacturers—Goodyear and Michelin.

These pacts come on the heels of another tentative agreement, reached July 29 between the USW and Bridgestone Americas.

All three agreements are pending, though timelines for ratification by union members were not immediately available for any of the three contracts.

The agreement between the USW and Goodyear was reached July 30, the Akron tire maker confirmed, after a 24-hour extension was implemented by the USW an hour before the previous master contract was set to expire July 29.

This tentative collective bargaining agreement, once ratified, would cover union workers at four Goodyear locations in the U.S.

A third tentative agreement was reached July 31 between the USW and Michelin, according to USW Local 351, also by way of a 24-hour extension before that previous contract expired July 30.

This proposed agreement would cover union workers at two Michelin locations in the U.S., both of which produce BFGoodrich-brand tires.

The USW-Goodyear labor proposal is for four years and covers about 5,900 workers at Locals 2L (Akron), 307L (Topeka, Kan.), 831L (Danville, Va.) and 959L (Fayetteville, N.C.), according to Goodyear.

"When Goodyear finally moved in a positive manner with an hour left before expiration, the USW granted a 24-hour extension," the USW told members of the four pertinent local chapters July 30. "Management moved because of the resolve and solidarity the membership has shown since we began negotiations. We granted the extension because we needed time to evaluate the offer, we did not want to call a strike if management finally realized we were not going to accept some of their ridiculous demands."

Goodyear confirmed the tentative agreement on its website with a brief statement. The company declined additional comment.

The Akron-based tire maker said prior to the tentative agreement being reached that its key issues in the negotiations included productivity, where its operations are competitive within North America and around the globe; operational flexibility; and rising health care costs.

"Like many American manufacturing companies whose products must compete in a global market, cost is a significant challenge for Goodyear," the firm said.

The USW said that "after reviewing the company's last-minute offer," the bargaining committee made a counter offer and the tentative agreement was reached.

A timeline for a ratification vote by USW members was not immediately known.

"In the coming days, we will proofread all the documents for accuracy and develop a summary for your consideration. We will then announce dates, times and locations for information meetings and ratification votes," the USW stated.

According to the USW, the tentative CBA contains general wage increases and the renewal of cost-of-living provisions.

All employees are slated to receive the COLA increases.

The committee told its members during negotiations that Goodyear could afford a fair agreement because it has more than $1 billion in cash availability, and that Goodyear Americas made more than $900 million in profits in 2021.

In addition, they claimed that Goodyear "demand(ed) the right to eliminate the Plant Protection Letter," which provides job security to USW members.

It is unclear if the Plant Protection Letter remained in the tentative CBA that ultimately was reached.

Other points of discussion, according to the USW, included pension contributions; health care details; new hire wage progression; and vacation time.

"We have improved the PPO health care plan, with a path ... for all employees to be able to participate in the PPO," the USW said July 30. "We have improved the company's contributions to our 401(k) pension plan and we have achieved many of the goals the committee was directed to bargain.

"Your solidarity and support have proven to be crucial in this round of bargaining when Goodyear was focused on concessions."

Membership had granted strike authorization in the Goodyear proceedings, though such approval is standard in such negotiations.

The tentative CBA reached between the USW and Michelin July 31 covers about 2,500 workers at Local 351L in Tuscaloosa, Ala., and Local 715L in Fort Wayne, Ind.

"Michelin North America has reached tentative labor contract agreements with the United Steelworkers at its BFGoodrich Tires plants," a Michelin spokesperson told Rubber News Aug. 1. "The company is pleased to reach an agreement that is mutually beneficial."

From the USW's perspective, sticking points during negotiations centered on retainment of cost-of-living provisions; bonuses related to attendance; bonuses related to production; maintaining the same language as the previous CBA in regards to health care; and no changes to overtime.

"It is important that we are competitive to protect our jobs and our futures," the USW wrote to its members July 27 on the negotiations portion of its website. "With the current economic environment, we also understand that our families need to have acceptable wages and suitable benefits.

"We will continue to fight to reach these goals."

Production during the COVID-19 pandemic also was a major point of contention between the USW and Michelin during negotiations, ultimately taking the form of "bonuses related to attendance" in the tentative agreement.

"These issues include attendance and the importance of being present to be able to meet our production commitments," the USW wrote to members of the two locals in a July 21 update.

The initial negotiation session between the USW and Michelin took place June 21, according to the USW.

Like the USW-Goodyear tentative CBA, the USW said it would not discuss further details until membership had ratified the agreement.

A timeline for a ratification vote on this tentative contract agreement was not immediately known.

The United Steelworkers and Bridgestone Americas reached a tentative agreement July 29 on a master contract that would cover about 4,000 workers at six company facilities.

The two sides came to terms shortly after the prior contract had expired.

The tentative pact with Bridgestone is for USW locals in Des Moines, Iowa; Akron; Bloomington, Ill.; Russellville, Ark.; and La Vergne and Warren County, Tenn.

Kevin Johnsen, chairman of the USW Rubber and Plastic Industry Council (who also led the Bridgestone negotiations for the USW), said local union leaders were key in making sure membership concerns were addressed during negotiations.

"We came to the table prepared to negotiate in good faith for a fair contract, and management made us fight for it every step of the way," Johnsen said in a July 29 statement provided to Rubber News. "We are proud of what we have accomplished thanks to the unity, strength and solidarity of our members and activists across all of the Bridgestone locations."

Nashville, Tenn.-based Bridgestone said in a statement July 29 that the tentative agreement, if ratified, "will ensure thousands of U.S. teammates in five states maintain good-paying jobs and strengthen the global competitiveness of the company's U.S. manufacturing facilities."

"The tentative agreement speaks to the commitment from Bridgestone and the USW to continue to support current operations in the six communities while maintaining flexibility to invest in future growth opportunities so we can continue to serve our customers," the firm said.

Johnsen said the union's bargaining committee will present the proposed contract to the membership for ratification.

No details of the proposed pact will be disclosed until union members have a chance to review it with their elected representatives, Johnsen said.

"Our members have earned and deserve fair wages, benefits and working conditions," he said. "The proposed contract builds on decades of collective bargaining progress with hard-fought economic and contract language improvements."

A timetable for a possible ratification vote was not known.

Bruce Meyer, Rubber News staff, contributed to this report.