Yokohama awaits union ratification of pact

May 22, 2010

Yokohama Tire Corp. is awaiting a vote of United Steelworkers (USW) Local 1023 plant members on a tentative labor agreement reached May 16.

The bargaining parties on both sides reached a four-year agreement, which includes, from the USW's point of view, the following:

* a "no closure" agreement for the Salem, Va., manufacturing plant for the life of the agreement.

* a new COLA (cost of living adjustment) structure that will incorporate "all potential gains through cost-of-living... in the base wage rates for day-work employees" and on the outside of the base wage rate for incentive workers.

* the continuation of the union's current pension plan and double disability pension supplements "as is."

* the transfer of the union's FASB (Financial Accounting Standards Board) accrual fund, which was created in 1997, from a book account to a VEBA (Voluntary Employees Beneficiary Association) trust "in order to allow for investment of the funds, and to protect the long-term security of the fund."

(To read the tentative agreement as proposed to USW Local 1023 members, click

Yokohama's Salem consumer tire plant has the capacity to produce 23,100 tires a day, according to the 2010 Modern Tire Dealer Facts Issue.