Union ratifies labor agreement with Michelin; trades wage reductions for j

[Omaha Steve]

Full story: http://www.moderntiredealer.com/t_inside.cfm?action=news_det&storyID=6362

Just old enough to not be breaking news.

Union ratifies labor agreement with Michelin; trades wage reductions for job security

August 6, 2006

The tentative labor agreement between Michelin North America Inc. and the United Steelworkers (USW) involving three domestic BFGoodrich Tire Manufacturing plants has been ratified.

The new agreement, which covers 4,000 union members, calls for a 20% reduction in the wage rate structure and increases in employee health care cost-sharing at the BFGoodrich plants in Tuscaloosa and Opelika, Ala., and Fort Wayne, Ind.

Significantly reducing Michelin's costs over the life of the three-year contract was "absolutely critical to the long-term viability of these plants," according to Michelin.

"The North American tire market is one of the most competitive in the world, with increasing price pressure from vehicle manufacturers, unprecedented raw material and energy costs, and a surge of replacement market tires from competitors in lower-cost countries," says Jim Micali, chairman and president of Michelin North America. "Getting our labor costs in line with market rates and limiting our long-term liabilities are crucial to securing the future viability of our North American facilities."

[stepnw1f]

1. The Little Guy Loses Again

"Significantly reducing Michelin's costs over the life of the three-year contract was "absolutely critical to the long-term viability of these plants," according to Michelin."

Surrre it is.

[Warpy]

2. Buzzword alert!

"Getting our labor costs in line with market rates and limiting our long-term liabilities are crucial to securing the future viability of our North American facilities."

In other words, do more work for less money or we're moving to Malaysia. Oh, and forget about retiring, we're going to loot the pension you've been contributing to all these years. Suck it up, suckers!

[LincolnMcGrath]

3. Translation: CEO and Share Holder wealth to increase twofold in 07!

:puke:

[LincolnMcGrath]

4. UNION KICK