More Details Leaking Out
Don over at Underdog
has these details from the Goodyear version of the tentative proposal accepted on Friday after the policy committees met in Pittsburg:
The tentative agreement gives Goodyear the ability to reduce excess high-cost manufacturing capacity, reduce legacy costs, improve productivity and reduce labor costs consistent with the four point cost reduction plan that was announced to investors in 2005. The tentative agreement:
Secures retiree medical benefits through an independently administered Voluntary Employees' Beneficiary Association (VEBA) to be launched with an up front $1 billion contribution from Goodyear to consist of $700 million in cash and up to $300 million in additional cash or common stock at the company's option. Subject to court and regulatory approvals, the VEBA would assume full responsibility for providing retiree medical benefits to all present and future Goodyear USW retirees;
Consistent with Goodyear's previously announced plans to exit certain segments of the private label tire business, provides for the closing of the Tyler, Texas, facility after December 31, 2007;
Delivers substantial improvements in labor costs and productivity through redesign of incentive systems and immediate implementation of market-based wage and benefit levels for all new hires;
Improves job security and provides capital investments in USW plants of at least $550 million over the life of the agreement.
This is Goodyear's version, according to Don. A meeting is scheduled for this week where the information will be shared with the Local 878L. As you can see, the closing of the Tyler plant appears to inevitable, however, regardless of what everyone might think, most men and women were on the line to retain retiree health care.
This, my friends, is a step in the right direction.