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Reopener in rubber.

Reopener in rubber

The Uniroyal Goodrich Tire Co. and the United Rubber Workers, representing about 6,400 workers at four plants, reached an accord on a contract reopener on economic terms contained in an agreement that will expire on March 31, 1991. The outcome of the reopener permits the Uniroyal Goodrich employees to catchup with 15,000 Rubber Workers members at Goodyear Tire and Rubber Co. and 4,700 Rubber Workers members at Firestone Tire and Rubber Co., the two other major U.S. tire companies. During the 1988 round of negotiations in the rubber industry, Rubber Workers and Uniroyal Goodrich, which was threatening to close plants and conduct layoffs, settled on some issues before agreements expired at the other large rubber companies. Terms of the accord included a ban on the closing of four plants in exchange for pay cuts, a 1-year moratorium on cost-of-living allowances (with adjustments to be made to the extent of any rise in the Consumer Price Index in excess of 4.5 percent), and a provision for employees to gain equity in the company. Other terms were set later, based on the outcome of negotiations at Firestone and Goodyear, which included a reopener scheduled for March 1990.

Terms agreed to under the reopener at Uniroyal Goodrich call for an immediate 25-cent advance on future cost-of-living adjustment allowances for workers at three of the four tire plants employees at the fourth plant are covered by a special local agreement that included a provision that allowed a review of the cost-of-living issue in May 1990); a $1.50 increase (to $23.50) in the monthly pension rate for all years of credited service; a $25 increase (to $250) in weekly sickness and accident benefits effective April 23, 1990; and enhanced medical benefits, including those for x-ray, radiation, and diagnostic services.

Earlier this year, The Michelin Group purchased Uniroyal Goodrich for $1.5 billion. If the sale is approved by the U.S. Government (antitrust regulators), Michelin would become the world's largest tire maker. Effective with the acquisition, Uniroyal Good rich's employees expect to receive about $1,500 each under an "equity unit" plan negotiated under the current agreement.
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Title Annotation:Developments in industrial relations; Uniroyal Goodrich Tire Co.-United Rubber Workers of America collective labor agreement
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Date:Jul 1, 1990
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