Goodyear shares fall after USW ratifies new labour contract

21 September 2009 22:21  [Source: ICIS news]

HOUSTON (ICIS news)--The ratification of a new labour contract between US tyre company Goodyear Tire & Rubber and the United Steelworkers union (USW) failed to impress investors on Monday, sending Goodyear shares down 3.7% on the New York Stock Exchange.

The four-year contract, finalised on 19 September, will enable the company to address productivity, compensation costs and flexibility issues in its North American tyre business, said Richard Kramer, Goodyear’s chief operating officer and president of North American operations.

“This agreement reflects the commitment of Goodyear and the USW to continue to work together to achieve our common goal of world-class competitiveness,” Kramer said.

The master agreement covers seven Goodyear plants in Akron, Ohio; Buffalo, New York; Danville, Virginia; Fayetteville, North Carolina; Gadsden, Alabama, Topeka, Kansas; and Union City, Tennessee, the company said.

Goodyear closed at $16.45/share, down 63 cents.

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By: Gene Lockard
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