29 September 2009 20:32 [Source: ICIS news]
The $215m in cost savings will be reached through added flexibility in the contract, including a reduction in the required minimum staffing levels at the plants; additional allowed buyouts in response to unexpected market downturns; and the outsourcing of certain equipment maintenance positions, Goodyear said.
Including pre-bargain agreements to reduce staffing levels at five plants, the company said it expects to realise $555m in total savings over the four-year term.
For its part, Goodyear agreed to invest $600m in union-represented US plants in ?xml:namespace>
The 2009 deal built on the changes made in the 2003 and 2006 contracts and addressed the core issues impacting the competitiveness of Goodyear’s North American tyre business, said Richard Kramer, president of Goodyear’s North American tyre business.
As of 13:52 hours Houston time (18:52 GMT) on Tuesday, Goodyear traded at $17.11/share on the New York Stock Exchange, up 58 cents, or 3.5%, on the day.
($1 = €0.68)
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