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Goodyear makes proposals based on union's contract with Michelin

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Goodyear Tire & Rubber Co. has presented a new set of proposals to the United Steelworkers. The proposals are "based closely" on the union's contract with Michelin North America Inc., say Goodyear officials.

Highlights include:

* plant protection similar to Michelin's agreement for all but two Goodyear master plants, including guarantees of no layoffs below a fixed number at protected facilities;

* pay increases for approximately 31% of Goodyear's workforce, as of July 2009;

* pay protection for current workers through July 2009, unless they move to a lower job grade;

* continued Cost of Living Allowance (COLA), distributed as a percentage based on pay rates;

* establishment of a "support unit;"

* revised piece work incentives;

* an "exit incentive" for up to 10% of the active population;

* pension increases with length of service;

* life insurance improvements for active employees;

* plant investment guarantees;

* a plan to protect competitive retiree medical benefits;

* reduce vacations for new hires;

* active health care changes.

The proposals were presented on Sept. 13. Goodyear and union officials are meeting in Cincinnati. Ohio.

Goodyear has said it wants to see the union forge a new labor contract with Bridgestone Firestone North American Tire LLC first.

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