Goodyear Saves $215 with New Contract

On Tuesday, Goodyear announced that their new contract that they agreed to with the United Steelworkers union will help cut costs to the tune of $215 million over 4 years. The contract covers more than 10,000 workers in more than a half dozen plants.

While Goodyear is happy with the cost cutting aspect of the new deal, Richard Kramer of Goodyear points out that there is more involved than simply saving money.

Said Kramer: “This innovative agreement can truly change the way we run these factories. We can improve our efficiency, flexibility and competitiveness in both the near-term and long-term, driving working capital improvements and allowing us to be more responsive to the needs of our customers.”

Goodyear, known chiefly for its tires, has more than 65,000 workers around the globe in more than two dozen countries. Investors were apparently excited by this news as Goodyear stock was on the rise on Tuesday.

Goodyear Tires (Image: Flickr)