It’s been a very long time since an employer has announced plans to close a
plant and lay off thousands of workers in the middle of a strike. But on Monday,
October 30, that’s exactly what Goodyear Tire & Rubber did when it announced
it was shutting down its plant in Tyler, Texas, a move that will result in the
loss of 1,100 jobs.
Labor relations experts fear that the increasingly contentious situation at
Goodyear might be a preview of employer/labor negotiations in coming months,
particularly as GM, Ford and DaimlerChrysler enter union contract negotiations
in 2007.
Goodyear’s announcement came 25 days after more than 15,000 workers
represented by the United Steelworkers union walked off the job after failing to
come to an agreement with Goodyear over their contracts.
The United Steelworkers attributes the impasse to the fact that it believes
its workers made major concessions in 2003 in good faith that there wouldn’t be
more closings and cuts in the next round of negotiations, says Wayne Ranick, a
union spokesman.
"In 2003, we accepted cuts in wages, pension and health care benefits and we
allowed them to close one facility," he says. "Now they want more plant
closures."
On top of announcing the closure of the Tyler plant, Goodyear also told the
union that it had started to hire temporary workers, Ranick says. Both moves by
the employer are going to make negotiations even harder and more contentious, he
says.
"These announcements are going to make coming to an agreement much more
difficult," he says.
But Goodyear insists that the cuts are necessary to remain competitive. "We
won’t accept a contract that puts us at a cost or competitive disadvantage,"
says Ed Markey, spokesman.
Goodyear’s hard-line stance may signal to all employers--but particularly to
the Big Three automakers, which are prepping for union negotiations--that public
favor today is with them and they can make such bold moves, says David Gregory,
a professor of law, labor and employment at St. John’s University in Queens, New
York.
"An employer closing a facility in the middle of a strike would have been
unthinkable 40 years ago," he says. "But today the social momentum has
shifted."
At the same time, the situation at Goodyear shows that unions will have to
fight for their lives to get what they want, says Gary Chaison, a professor of
industrial relations at Clark University in Worcester, Massachusetts.
"The auto manufacturers are a little bit more mature in their dealings with
the unions than Goodyear. But on the other hand, the United Auto Workers is not
going to give anymore," he says. "They feel like they have given all that they
can."
Experts agree that the Goodyear situation may set the stage for how
contentious contract negotiations between unions and employers might be going
forward, but they doubt that there will be mass strikes in the auto
industry.
"While there is certainly a real confrontational feeling among the
rank-and-file workers in the auto industry, the United Auto Workers understand
that work stoppages are not an effective strategy," says Robert Bruno, an
associate professor of labor and industrial relations at the University of
Illinois in Chicago.
Any employers considering taking a hard-line stance like Goodyear’s need to
really consider the consequences, Chaison says.
"After you do something like what Goodyear is doing, you can’t just shake
hands and say let’s forget about the past," he says.
--Jessica Marquez