Bob Ulrich

Editor

Bob Ulrich was named Modern Tire Dealer editor in August 2000. He joined the magazine in 1985 as assistant editor, and has been responsible for gathering statistical information for MTD's "Facts Issue" since 1993. He has won numerous awards for editorial and feature writing, including five gold medals from the International Automotive Media Association. Bob earned a B.A. in English literature from Ohio Northern University and has a law degree from the University of Akron.

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Bridgestone's union contract ends; now what?

By: Bob Ulrich

The original labor contracts between the "Big Three" tire companies and the United Steelworkers have expired. Does that mean anything?

Not yet. Goodyear Tire & Rubber Co. and Michelin North America Inc. extended their contracts four weeks when they expired on July 15, 2009. Goodyear, for one, is on record as saying that despite missing the deadline for a new contract, it remains confident a mutally acceptable agreement can be reached.

Bridgestone Americas Inc. is building tires without a contract. Its labor agreement with the USW expired today (July 18). A Bridgestone spokesman says both parties will continue to follow the terms and conditions of the expired contract on a day-to-day basis, at least for now.

The move is not unprecedented, says Dan MacDonald, Bridgestone's executive director of communications. When their contract expired in 2006, they carried on in the same way, and eventually reached an agreement.

Goodyear, however, suffered through a strike in 2006 that had negative long-range effects on the company.

Still, when Goodyear and the union finally reached an agreement before Christmas 2006, both parties said the agreement was fair. The agreement included the ground-breaking VEBA (Voluntary Employees' Beneficiary Association) trust, funded by Goodyear and run by the union.

The 2006 negotiations, at least with Goodyear, were marked by outrageous and inflammatory statements by the union. This time around, the USW has been silent, instead focusing its vitriol on Chinese imports.

Hopefully, this is a sign of maturity on the part of the union. And hopefully, 2009 will be strike-free. If not, there may be more domestic plant closings. Think those plants will be unionized? Is the pope Catholic? Did Barry Bonds take steroids? Do Brangelina like kids?  

For the record, Goodyear has seven tire manufacturing facilities in the U.S.; six are unionized. Bridgestone has six plants, four of which are unionized. Michelin will have eight domestic plants -- one unionized -- when the announced closing of its Opelika, Ala., plant is completed.

Related Topics: Goodyear financials, Plant closings, USW, VEBA trust