The decline in the price of raw materials rubber oil

About a month after the start of an extensive strike action affecting 15 of its 18 North American plants, the direction of Goodyear developed oil on the fire. While Union United Steel Workers (USW) has called a strike for opposing a new multi-year agreement providing for further declines in wages and at least a plant closure, the direction of the number an American of the tyre has announced, unilaterally, the closure of a Texas site, the dismissal of 1,100 workers and the opening of a window for hiring for non-unionized staff. "It is a technique of intimidation." "They want to scare and see if our members are going to crack," to carry Wayne Ranick, responsible of the USW, claiming to be ready for a long strike at this time followed by more than 12,000 employees Americans. "We can take six months, a year...". "One day more than in all cases", swear.

A movement which falls ill

For the moment, the direction feels position of strength. "We can deliver our customers," said Ed Markey, the spokesman of the tyre. Nissan, one of the clients of Goodyear, confirms indeed not have been affected. "We stock, we can import and, especially, three of our plants turning completely and others partially turn with non-unionized employees," continued. "Nobody expected that the strike lasts so long, notes Jim Smith, editor of the journal"Tire review". For the moment, I think that the deliveries are insured but, beyond a month or two of strike, the situation is likely to be tense. "Cautious, manufacturers have already starting to consider alternatives for continuation of the conflict.

For Goodyear, who after having been near bankruptcy in 2003 feels on the road to recovery, this social movement falls ill. The decline in the price of raw materials (rubber, oil...) started since this summer should certainly contribute to improve profitability in the short term of the Michelin and Bridgestone-Firestone competitor, but to meet even its margins, the Group wanted to complete a new savings plan of $ 1 billion by 2008 among others by the closure of one or two Americans and the case of sites from the activity of sale wholesale of tyres under brandswhich represent 8 of its U.S. volumes but do not contribute to the profitability of the group.

The title found colors

"In 2003, there was an emergency." We have made wage concessions and agreed to be closed a plant. Today, the recovery of the business benefits everyone except the workers. "The direction is too greedy," said Wayne Ranick, who does not want to hear about new closures plants or decreases in wages.

For the moment, the arm of railway management-Union was not frightened investors. The title of the group, which was passed under the bar of 10 dollars last July, has even regrimpé over the $ 15. Jim Smith reported that some workers have returned to work, but the majority of Union troops remain, for the moment, mobilized.

World number one, but behind Goodyear on the US market, Michelin has, him, concluded this summer a multi-year agreement with the USW providing in Exchange declines in wages in new investment can go up to 20 and a large contribution of the employees at the expense of health. To cut costs, Bibendum has also closed a Canadian production site. Unlike its competitor, Michelin remains however little unionized in North America.