Steelworkers at Goodyear approve contract with Carlyle Group
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By MATT OLBERDING/Lincoln Journal Star
Union workers at four Goodyear Engineered Products plants, including Lincoln’s, have approved a tentative five-year contract with The Carlyle Group, which is buying the division.
Members of the United Steelworkers union approved the contract by a 2-1 margin in voting this week, according to the union.
In Lincoln, that margin was even higher — 82 percent voted in favor, said Gary Schaefer, vice president of Local 286.
Some Lincoln workers had expressed dissatisfaction with the proposed contract because of a provision that allows older workers to receive a Goodyear pension while continuing to work for Carlyle.
Those workers said that provision could discourage older workers from taking a Goodyear-offered buyout, which could then jeopardize the jobs of workers with less seniority being laid off after Carlyle takes over.
The proposed contract with Carlyle guarantees only 308 of the Lincoln plant’s current 480 jobs until 2012.
But the proposed contract also offers a similar buyout for workers who were not eligible for the one offered by Goodyear, according to a summary of the deal given to the Journal Star.
Other highlights of the deal include:
$45 million worth of investment in the union plants, including $6 million in Lincoln.
Profit sharing of 8 percent of the first $3.5 million in profits starting in 2008, with that amount rising $500,000 each year to $5.5 million by 2012.
Continued cost of living pay adjustments through 2012.
A lump-sum payment of $850 to each employee at the close of the sale.
Despite the approval of the contract by workers, the USW said there are “outstanding issues” that need to be resolved with Carlyle before a contract can be finalized. The union said those issues were still being negotiated Friday.
The union gave no details of what those issues were in a news release, and a spokesman said he had no further information.
Schaefer said he was told the issues had to do with a legal document, but he had no other information.
If the contract is finalized, it will pave the way for Carlyle to complete the proposed $1.475 billion sale, which was announced in March.
Carlyle would continue to produce Goodyear brands of hoses, belts and other products under the company name of EPD, Inc.
Goodyear Chief Executive Robert J. Keegan told analysts Thursday that he expects the sale to be completed in the third quarter.
Workers at plants in St. Mary’s and Marysville, Ohio, and Sun Prairie, Wis. also voted to approve the contract, the union said.
Overall, the Engineered Products division has about 6,500 employees worldwide in 32 countries, including more than 400 at a nonunion plant in Norfolk.
Reach Matt Olberding at 473-2647 or molberding@journalstar.com.
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