This is the press release I got less than an hour ago:
USW Gives Notice To End Contract Extension With Goodyear
AKRON, Ohio, October 2, 2006 – At 1:00 p.m. eastern today, the United
Steelworkers (USW) advised Goodyear that it was giving the Company the
required 72-hour notice to terminate the extension of the parties’ labor
contract. The contract had expired on July 22, 2006, and both parties
agreed to an extension that could be terminated with a 72-hour notice.
According to Jim Allen, Goodyear’s chief negotiator, the two parties are
continuing to negotiate in Cincinnati.
"The 72-hour notice simply creates a new deadline, which helps bring focus
to the discussions as we work toward a new agreement," he said. "While we
are working hard toward successful resolution, in the event that does not
occur Goodyear has contingency plans in place to continue operating our
factories and serving our customers."
Prior to the expiration of the 72-hour period (1:00 p.m. eastern, Thursday,
October 5), two scenarios are possible:
. The parties could agree to another extension of the previous contract;
. The parties could reach a tentative agreement on a new contract.
Following the expiration of the 72-hour period, three scenarios are
. The master plants could continue to operate and union employees could work
without an agreement;
. The Company could lock out the USW workers at the 12 master contract
. The Union could call a strike at the 12 master contract plants.
Goodyear will not comment further until the parties reach a resolution or
the 72-hour period expires.
Certain information contained in this press release may constitute
forward-looking statements for purposes of the safe harbor provisions of The
Private Securities Litigation Reform Act of 1995. Actual results may differ
materially from those indicated by such forward-looking statements as a
result of various factors, including the ability of the company and the
United Steelworkers to reach agreement on the terms of a master collective
bargaining agreement as well as the ratification of any such agreement by
the members of the United Steelworkers, and any action that may be taken by
the company or the United Steelworkers in the event that no such agreement
is reached. There are a variety of additional factors, many of which are
beyond the company’s control, which affect its operations, performance,
business strategy and results and could cause its actual results and
experience to differ materially from the expectations and objectives
expressed in any forward-looking statements. These factors include, but are
not limited to, actions and initiatives taken by both current and potential
competitors, increases in the prices paid for raw materials and energy, the
company’s ability to realize anticipated savings and operational benefits
from its cost reduction initiatives, potential adverse consequences of
litigation involving the company, pension plan funding obligations as well
as the effects of more general factors such as changes in general market or
economic conditions or in legislation, regulation or public policy.
Additional factors are discussed in the company’s filings with the
Securities and Exchange Commission, including the company’s annual reports
on Form 10-K, quarterly reports on Form 10-Q and current reports on Form
8-K. In addition, any forward-looking statements represent our estimates
only as of today and should not be relied upon as representing our estimates
as of any subsequent date. While we may elect to update forward-looking
statements at some point in the future, we specifically disclaim any
obligation to do so, even if our estimates change.
As soon as I have more, I'll let you know.