Academic journal article Monthly Labor Review

Goodyear Settlement Averts Scheduled Stoppage

Academic journal article Monthly Labor Review

Goodyear Settlement Averts Scheduled Stoppage

Article excerpt

A scheduled work stoppage at Goodyear Tire & Rubber Co. was averted when members of the United Rubber Workers accepted a settlement proposal that included an immediate wage increase, unlike the earlier proposal they rejected. Under the 3-year accord, the 25cent-an-hour immediate increase is an advance against possible future quarterly adjustments under the cost-ofliving formula. As under the 1985 contract, the formula is 1 cent an hour for each 0.26-point movement in the Bureau of Labor Statistics Consumer Price Index for Urban Wage Earners and Clerical Workers (1967 = 100).

In addition to the guaranteed wage increase, another change from the rejected offer was the addition of a provision for reopening negotiations on wages-with no right to strike-in March 1990. The approved contract also provides for restoration of a provision in the 1985 contract requiring that a majority of employees must approve "economic adjustments" or "givebacks" by individual local unions at any of the 11 plants.

National leaders of the Rubber Workers had backed the first settlement, contending that Goodyear's resources were limited because of the costs incurred fighting off a 1986 takeover by British financier Sir James Goldsmith.

In the benefits area, pension rates for future retirees were increased to $23.50 a month for each year of credited service, from $20. …

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