News From USW: USW-Carlyle Contract Still Pending

PITTSBURGH–(BUSINESS WIRE)–News From USW: The United Steelworkers (USW) announced today that while four plants in the U.S. currently owned by Goodyear Tire and Rubber have given their approval to a tentative agreement with a purchaser of Goodyears engineered products division, outstanding issues still need to be resolved before a contract is finalized. Those issues are the subject today of continuing talks between the USW International and the Carlyle Group, the purchaser.

The agreement was approved by members at USW Local 200 in St. Marys, Ohio, USW Local 286 in Lincoln, Neb., USW Local 904 in Sun Prairie, Wisc. and USW Local 843 in Marysville, Ohio. More than 1,600 workers are represented by the USW at the four facilities, where the contract is a tri-party agreement between the company, the union locals and the USW International.

The Carlyle Group, a premier global private equity firm, has been negotiating with Goodyear to acquire this non-tire producing division, but needs to first reach a new labor agreement with the USW because of a successorship clause in the current contract. This language requires any potential buyer to recognize the workers collective bargaining representative and to negotiate a new contract prior to finalizing any sale. If the sale is finalized, Carlyle will continue to produce Goodyear brands of hoses, belts and other products under the name of EPD, Inc.

The USW represents more than 850,000 members in North America. Some 70,000 are employed in the tire, rubber and plastics sector.