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US Steelworkers Ratify Contract with Michelin’s BF Goodrich Unit

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7 August, 2006

A pattern-setting agreement in the US rubber sector was achieved 5 August, following successful ratification by 4,000 members of United Steelworkers (USW) at three Michelin plants. The three-year labour agreement, now effective at Michelin’s BF Goodrich plants in Fort Wayne, state of Indiana, and Opelika and Tuscaloosa, both in the state of Alabama, preserves job security and prevents future layoffs at the three plants for the contract’s duration.

USW trade unionists at all three facilities voted in favour of the agreement. The common contract needed acceptance by workers at two of the three plants in order to pass.

“We believe we achieved our industry goals when it comes to protecting retiree health care benefits and securing additional job protection measures for our active members,” stated USW Executive Vice President Ron Hoover.

The BF Goodrich agreement does grant the company some lowered operational costs. The accord makes room for 435 rubber workers at the combined plants to take retirement with an enhanced package that includes up to 40 weeks of pay, depending on length of employment.

USW will now shift bargaining efforts to Bridgestone/Firestone (BSF), talks which have already begun. The union represents 6,000 BSF employees at eight manufacturing plants. The USW and Goodyear Tire & Rubber also are in negotiations, but the two sides are far apart on job security and other work terms. Goodyear is the biggest tyre-maker in the US, and the USW represents 17,000 workers at 12 plants.

The prior three-year labour agreement in the US rubber sector expired on 22 July.