Goodyear: Contract to save $610M |
|
|
|
Published
:
Tue, 09 Jan 2007 21:17
|
- Goodyear Tire & Rubber Co. estimates it will save $610 million over three years because of a new three-year labor deal reached with the United Steelworkers. A breakdown of projected savings:INCREASED PRODUCTIVITY: $300 million, including $60 million in overtime cuts and $90 million by paying new hires a lower starting wage and benefits package.REDUCED CAPACITY: $75 million through cutting jobs, including closing unprofitable Tyler, Texas, plant that employs 1,100 people and reducing the number of tires made by about 21 million.CUTTING RETIREE COSTS: $275 million by eliminating Goodyear's future obligation to health care for retired union workers by making a one-time $1 billion contribution to an independent Voluntary Employees' Beneficiary Association trust fund.Goodyear subtracted $40 million from the three-year savings to account for pension service fees and other costs, bringing total savings to $610 million.Source: Goodyear Tire & Rubber Co.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
|
|
|
|
|
|
|
| Stock
Quotes * |
|
NASDAQ
|
|
2792.28 |
22.57 (
0.81 %)
|
| SYMBOL (
2012-01-19 ) |
| LAST |
CHANGE
|
|
CARNIVAL
(
11:35am )
|
|
2017.00 |
46.00 (
2.42 %)
|
|
WHITBREAD
(
11:35am )
|
|
1662.99 |
33.99 (
2.09 %)
|
| SYMBOL (
2012-01-19 )
|
| LAST |
CHANGE
|
|
IBM
(
12:34pm ) |
|
181.50 |
0.43 (
0.24 %)
|
| SYMBOL (
2012-01-19 )
|
| LAST |
CHANGE
|
|
|
Print this Story
Goodyear to close plants in UK and Poland, to cut 1,500 jobs 