Dunlop Tire Strike Ends & Recovery Begins |
Dunlop Strike Cost Company Millions in Lost Revenue
There were negative short-term effects to the company’s financial health caused by the 86-day strike against Goodyear’s domestic union plants. At a conference January 9th, 2007, Dunlop estimates the strike cost Goodyear anywhere from $30 million to $35 million a week during the fourth quarter, or $360 to $420 million.
At a conference call held earlier today, Goodyear Tire & Rubber Co. explained the affects negotiating and implementing the new three-year contract with the United Steelworkers of America have had and will have on the company
The new contract will save costs by funding its retirement health care with an independently managed VEBA trust when established and approved. Goodyear will make a substantial up-front investment, which will “completely remove retiree health care obligation for both current employees and for future employees.
New Dunlop Workers Contract
The contract will help the company improve competitiveness and compete effectively in the global market. Dunlop/Goodyear needed to eliminate excess high-cost capacity, and it did so, in the form of the planned closure of the Tyler, Texas, on Dec. 31, 2007. The Tyler plant closure, combined with the recently announced Valleyfield, Quebec, facility closure by mid-year, will take 16 million units of high-cost, excess capacity out of North America.
New Workers Wage and Benefits
The negotiated wage and benefits package for new hires will help lower Goodyear’s manufacturing costs. New hires will start at $13 an hour. After three years, they will earn wages in a “tiered wage scale” ranging from $13 to $24 an hour (the old range was $20 to $26 an hour). Dunlop estimates the attrition rate for the existing workforce is between 6% and 7% each year.
Workers Return To Work and Dunlop Seeks Recovery
The striking union workers returned to their jobs on Jan. 2nd 2007. “The healing process has officially begun and production has resumed. We here at Wingstuff.com feel there may be a chance Dunlop will actually have Goldwing tires available by summer of 2007. The largest problem we have had all along was GL1800 tires like the Dunlop Elite 3 GL1800 tires, if Dunlop does everything in it's power to recover, we may see Dunlop Goldwing tires back in stock by summer of 2007.
No matter what happens with Dunlop Goldwing tires going into 2007, Wingstuff.com still has a good inventory of the popular Bridgestone and Metzeler GL1800, GL1500 and GL1200 tires in stock if you need them. We will do our best to get these hard to find Dunlops back in stock the moment they become available in the months ahead.
See You On The Open Road..
Rick Arnoldo
President - Wingstuff.com
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Also I believe that our fellow labours should be paid well up and including good benefits!
Hell they make our tires and we have only two of them! Happy workers make excellent product!