TOWN OF TONAWANDA: Dunlop workers reviewing tentative agreement

Business

September 9, 2009

Staff Reports The Lockport Union-Sun %26 Journal Wed Sep 09, 2009, 08:37 PM EDT

TOWN OF TONAWANDA — The United Steelworkers union is mulling over a tentative agreement with Goodyear Tire and Rubber Company, covering 10,300 union members including the 950 employed at the Town of Tonawanda Dunlop Plant.

Meetings and discussions between local union leaders and members are taking place at all seven plants covered by the agreement in advance of the vote, expected to be concluded by Sept. 18. In a statement on the union’s Web site, USW contract coordinator Kevin Johnsen said contract summaries have been distributed to give the membership plenty of time to digest it before voting.

“The contract must be approved by a majority of the membership and a majority of the plants,” Johnsen said.

The previous agreement expired July 18 and the contract was extended twice before the tentative settlement was reached.

“Our priorities were to protect our plants and our jobs while maintaining good, affordable health care in a difficult economic climate,” USW International Vice President Tom Conway said in the statement. “This contract achieved these goals in addition to making some other needed improvements such as securing resources the union can defer to assist our retirees.”

Among other provisions, the agreement requires Goodyear to invest a minimum of $600 million to maintain the seven production facilities with new equipment. It also protects the plants against closure. In addition, minimum staffing levels will be maintained and no shift in production from these plants may be made to any non-USW represented production facility.

In the event that the company decides to no longer produce truck tires in Tonawanda, 200 separation allowance buyouts will be made available to local employees. The buyouts are calculated at $2,000 per year of service with a maximum payout of $50,000. An additional 400 separation buyouts have been negotiated for employees at all other locations in the event of a further downturn in the market.

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