Goodyear Employees Prepare To Say Goodbyes
(File Photo)
HISTORY: David Parker, technical team leader at Tyler’s Goodyear plant, signs the flag that previously flew at the plant in this 2005 photo. In September 2005, the parent company hoisted the flag of Goodyear, Kelly-Springfield’s parent company, at the plant, which signified a name change at the Tyler facility. Although some saw the plant’s renaming as a positive sign for its future, the company announced last year that it would cease tire production at the facility, which opened in 1962, leaving about 600 hourly employees to retire or find other jobs.
By GREG JUNEK
Business Editor
In May 2002, former Kelly-Springfield Tire Co. workers joined current employees to celebrate the 40th anniversary of the plant that provided them with a good living.
Although previously threatened with a possible closure, things were good that day as company and union workers mingled, broke bread together and talked about their time at the facility that faces Texas Highway 31 West.
And again, in August 2005, a smaller group of current and former employees help celebrate the renaming of the Kelly plant to that of its parent company, Goodyear.
Former plant manager Billy Taylor said he believed the renaming was a sign that Akron, Ohio-based Goodyear had faith in the Tyler plant and would continue to support it.
But last year, during negotiations for a new master contract, the United Steelworkers had its concerns about the company’s intentions confirmed. The USW was only able to receive a company commitment that it would keep the plant open through 2007. Shortly thereafter, Goodyear announced tire production at the plant would cease after this year.
Now, as 2007 comes to an end, many workers are preparing to say goodbye to their employer. Some have worked at the plant more than three decades.
A corporate spokesman said the decision to cease tire production was the result of costs it would require to modify the plant to produce tires that bring greater revenue. The Tyler plant had received new machinery in recent years to make the more profitable tires, and it had modified some of its existing machinery to do the job, but the company stuck to its plan.
“Many factors were considered for our investment plans, but because of its already low capacity to produce high-value tires, Tyler would have needed larger capital investment for re-tooling its capability than other plants,” according to a statement from Akron, Ohio-based Goodyear. “This action is part of the company’s decision to exit the unprofitable wholesale private-label business. It is also consistent with our previously announced strategy to reduce costs by more than $1 billion by 2008.”
Efforts in recent weeks to talk to management at the plant have been unsuccessful.
Throughout the past year, the plant has had at least three managers. Bobby Wayman, a longtime employee, is its current manager.
In late October, the company issued the union the Worker Adjustment Relocation Notice (WARN) Act notification. This is a notice a company must issue 60 days prior to a layoff that will affect more than one-third of the workforce.
Goodyear’s corporate office confirmed a majority of the layoffs would occur on Jan. 1, 2008.
For most of last month, the company and union negotiated a plant reduction plan, and on Wednesday the union began meeting with employees to give them an overview of what will occur.
Goodyear has between 650 and 750 hourly employees, following a workforce reduction earlier this year in which employees took buyout offers and early retirement. The lay-offs will initially scale that number down to about 160 hourly employees, USW Local 746L President Jim Wansley said. After all of the layoffs are completed, the plant will be left with about 130 hourly people.
“We would operate a mixing operation, and we would still do some of what we call component prep production, supply some components to other plants as needed,” Wansley said.
The union president declined to elaborate on the method that will be used to determine who will be laid off.
“There is a method for canvassing who will go,” he said.
THE INEVITABLE
Susan Dudley, an employee for 5 1/2 years, said low-seniority people cannot do much to escape the inevitable.
“I’m not sure exactly what their choices are just yet, but I know there are not many choices for us,” she said.
Ms. Dudley, 45, did not take the company buyout offer earlier this year because if she stayed, she would be able to retain her health insurance at the same premium.
Wansley said laid-off employees will be eligible to retain the insurance from 90 days to two years with the same premiums, depending on certain conditions.
Ms. Dudley said some of her colleagues were tired of dealing with Goodyear or they had job opportunities elsewhere. It was a smart thing for them to take the buyout.
“For others, insurance did have a lot to do with it, and the pay,” she said.
Many employees, including Ms. Dudley, realized the chances that Goodyear would continue to produce tires in Tyler were not good; the union told them this prior to last year’s master contract negotiations. Ms. Dudley said she organized a plan to put her and her husband on a better financial footing.
“That’s the time I cut up the credit cards,” she said, adding she and her husband were also able to pay down a lot of their debt.
Although she has been at the plant for more than five years, Ms. Dudley has only actually worked about four years because of last year’s strike and a layoff.
Now, she plans to be ready to move to another occupation and earn a four-year college degree.
“It’s not going to be anywhere near the pay I’m making now, but you just have to roll with it,” she said. “I had a job when I came here; I’ll have a job when I leave.”
Larry Smith, who works in Goodyear’s maintenance department, said that after 29 years he was getting ready to retire at age 55.
“It kind of messed that up,” the 52-year-old Smith said of the plant’s questionable future. “I can still probably retire, but not like I wanted to.”
He said he believed he would be able to retain his job because of his seniority, but acknowledged the workers had not yet been told of their options.
Smith and Ms. Dudley both said they are lucky in that they do not have children to support.
The two echoed the sentiments shared previously by union officials, in saying they believe corporate executives are in their jobs for the money only, and that job security is a diminishing concern.
“It’s been great; I couldn’t have asked for a better job,” Smith said. “But now, the way corporate America is, … they don’t care. They’re playing to the stock market.”
Goodyear does not take pride in its employees, Smith said, but he stopped short of bashing the company.
“It’s supported my family for 28 years,” he said. “We’ve had a good lifestyle.”
ECONOMIC IMPACT
Tom Mullins, Tyler Economic Development Council president and chief executive officer, has said that retailers would probably feel the cutback in holiday spending they once enjoyed from Goodyear employees, but affects on the economy will run deeper than purchases of electronics or new clothes.
A study by Impact DataSource in 2005 showed the Goodyear plant’s economic impact totaled $161 million per year statewide.
At 1,075 jobs at the time of the study, salaries totaled $70 million, and economic output reached $388 million.
But the jobs at Goodyear helped create other jobs in the sectors of the economy that supplied the plant. Indirect and induced economic output was $560 million, and salaries $91 million.
Mullins said the trickle-down effect to other jobs will be significant.
“A large manufacturer like Goodyear will support two to three jobs (per one Goodyear job) out in the community,” he said. “Different studies come up with different numbers, but generally that’s kind of a rule of thumb, the ripple effect.”
Some of the small tool support companies to Goodyear have already had to cut back on their employment numbers, Mullins said.
“That’s everything from office supplies to vending machines in the plant,” he said. “Those jobs will all be reduced for a while, and we’ll have to wait for other sectors of the economy to pick up to make that up.”
In 2005, plant-related revenues for Tyler area taxing districts totaled $10.46 million, according to Impact DataSource information. This included sales and use taxes, property taxes, utility fees, hotel-motel taxes and state school funding.
OTHER LOSSES
Not only will the Goodyear workers and some in other industries lose out when the plant reduces its staff. Charitable giving in the Tyler-Smith County area will also sustain a loss.
The plant is known for being a large contributor to the United Way of Tyler/Smith County.
LaJuan Hollis, United Way interim president, said contributions from the plant totaled $95,024 in 2006. The entire 2006 campaign totaled $2.13 million.
“They gave hundreds of thousands of dollars to charities all over Tyler and Smith County, and tens of thousands of dollars just to United Way every year,” Mullins said. “And they’ve given not only as a company, but also the workers collected money. It was very impressive, and that will be a big loss.”
Other activities have included providing gifts to the Youth & Family Enrichment Center and helping disadvantaged children by inviting them to the union activity building for lunch, toys and clothing for Christmas.
It has also contributed to higher education efforts in East Texas.
The union has a scholarship association that is funded by the company and the union, Wansley said. Company and union representatives serve on the association board.
Some scholarships for Tyler Junior College, The University of Texas at Tyler and Trinity Valley Community College are endowed and will continue regardless of the plant’s future, he said. But additional at-large scholarships will be reduced.
Through both mechanisms, Goodyear has given as many as 50 scholarships of $1,000 per year, Wansley said. The downsizing or potential loss of Goodyear would cut the scholarships by probably two-thirds.
“We will have one-ninth of the people we had before, so the impact on the community would be felt in a lot of ways,” he said.
Other charitable events have included providing gifts to the Youth & Family Enrichment Center, and helping disadvantaged children by inviting them to the union activity building where they are given lunch, toys and clothing for Christmas, officials previously said. The children are from identified day-care areas in the community.
Workers have also given to the community through blood drives and collecting food for the East Texas Regional Food Bank.
PLANT HISTORY
In May 1961 Goodyear chose Tyler as the location of the new plant. The plant produced its first tire, a 6.50-by-15 passenger tire, on April 27, 1962.
Since 1962 it has manufactured hundreds of millions of tires, employed thousands of people and contributed millions of dollars to the United Way, based on information provided at the 40th anniversary.
The plant started in 1962 making bias tires to fit the then-popular 13-, 14- and 15 inch rim sizes. In 1985, it was the first plant that Goodyear converted from a bias tire plant to a radial tire plant.
Business Editor
In May 2002, former Kelly-Springfield Tire Co. workers joined current employees to celebrate the 40th anniversary of the plant that provided them with a good living.
Although previously threatened with a possible closure, things were good that day as company and union workers mingled, broke bread together and talked about their time at the facility that faces Texas Highway 31 West.
And again, in August 2005, a smaller group of current and former employees help celebrate the renaming of the Kelly plant to that of its parent company, Goodyear.
Former plant manager Billy Taylor said he believed the renaming was a sign that Akron, Ohio-based Goodyear had faith in the Tyler plant and would continue to support it.
But last year, during negotiations for a new master contract, the United Steelworkers had its concerns about the company’s intentions confirmed. The USW was only able to receive a company commitment that it would keep the plant open through 2007. Shortly thereafter, Goodyear announced tire production at the plant would cease after this year.
Now, as 2007 comes to an end, many workers are preparing to say goodbye to their employer. Some have worked at the plant more than three decades.
A corporate spokesman said the decision to cease tire production was the result of costs it would require to modify the plant to produce tires that bring greater revenue. The Tyler plant had received new machinery in recent years to make the more profitable tires, and it had modified some of its existing machinery to do the job, but the company stuck to its plan.
“Many factors were considered for our investment plans, but because of its already low capacity to produce high-value tires, Tyler would have needed larger capital investment for re-tooling its capability than other plants,” according to a statement from Akron, Ohio-based Goodyear. “This action is part of the company’s decision to exit the unprofitable wholesale private-label business. It is also consistent with our previously announced strategy to reduce costs by more than $1 billion by 2008.”
Efforts in recent weeks to talk to management at the plant have been unsuccessful.
Throughout the past year, the plant has had at least three managers. Bobby Wayman, a longtime employee, is its current manager.
In late October, the company issued the union the Worker Adjustment Relocation Notice (WARN) Act notification. This is a notice a company must issue 60 days prior to a layoff that will affect more than one-third of the workforce.
Goodyear’s corporate office confirmed a majority of the layoffs would occur on Jan. 1, 2008.
For most of last month, the company and union negotiated a plant reduction plan, and on Wednesday the union began meeting with employees to give them an overview of what will occur.
Goodyear has between 650 and 750 hourly employees, following a workforce reduction earlier this year in which employees took buyout offers and early retirement. The lay-offs will initially scale that number down to about 160 hourly employees, USW Local 746L President Jim Wansley said. After all of the layoffs are completed, the plant will be left with about 130 hourly people.
“We would operate a mixing operation, and we would still do some of what we call component prep production, supply some components to other plants as needed,” Wansley said.
The union president declined to elaborate on the method that will be used to determine who will be laid off.
“There is a method for canvassing who will go,” he said.
THE INEVITABLE
Susan Dudley, an employee for 5 1/2 years, said low-seniority people cannot do much to escape the inevitable.
“I’m not sure exactly what their choices are just yet, but I know there are not many choices for us,” she said.
Ms. Dudley, 45, did not take the company buyout offer earlier this year because if she stayed, she would be able to retain her health insurance at the same premium.
Wansley said laid-off employees will be eligible to retain the insurance from 90 days to two years with the same premiums, depending on certain conditions.
Ms. Dudley said some of her colleagues were tired of dealing with Goodyear or they had job opportunities elsewhere. It was a smart thing for them to take the buyout.
“For others, insurance did have a lot to do with it, and the pay,” she said.
Many employees, including Ms. Dudley, realized the chances that Goodyear would continue to produce tires in Tyler were not good; the union told them this prior to last year’s master contract negotiations. Ms. Dudley said she organized a plan to put her and her husband on a better financial footing.
“That’s the time I cut up the credit cards,” she said, adding she and her husband were also able to pay down a lot of their debt.
Although she has been at the plant for more than five years, Ms. Dudley has only actually worked about four years because of last year’s strike and a layoff.
Now, she plans to be ready to move to another occupation and earn a four-year college degree.
“It’s not going to be anywhere near the pay I’m making now, but you just have to roll with it,” she said. “I had a job when I came here; I’ll have a job when I leave.”
Larry Smith, who works in Goodyear’s maintenance department, said that after 29 years he was getting ready to retire at age 55.
“It kind of messed that up,” the 52-year-old Smith said of the plant’s questionable future. “I can still probably retire, but not like I wanted to.”
He said he believed he would be able to retain his job because of his seniority, but acknowledged the workers had not yet been told of their options.
Smith and Ms. Dudley both said they are lucky in that they do not have children to support.
The two echoed the sentiments shared previously by union officials, in saying they believe corporate executives are in their jobs for the money only, and that job security is a diminishing concern.
“It’s been great; I couldn’t have asked for a better job,” Smith said. “But now, the way corporate America is, … they don’t care. They’re playing to the stock market.”
Goodyear does not take pride in its employees, Smith said, but he stopped short of bashing the company.
“It’s supported my family for 28 years,” he said. “We’ve had a good lifestyle.”
ECONOMIC IMPACT
Tom Mullins, Tyler Economic Development Council president and chief executive officer, has said that retailers would probably feel the cutback in holiday spending they once enjoyed from Goodyear employees, but affects on the economy will run deeper than purchases of electronics or new clothes.
A study by Impact DataSource in 2005 showed the Goodyear plant’s economic impact totaled $161 million per year statewide.
At 1,075 jobs at the time of the study, salaries totaled $70 million, and economic output reached $388 million.
But the jobs at Goodyear helped create other jobs in the sectors of the economy that supplied the plant. Indirect and induced economic output was $560 million, and salaries $91 million.
Mullins said the trickle-down effect to other jobs will be significant.
“A large manufacturer like Goodyear will support two to three jobs (per one Goodyear job) out in the community,” he said. “Different studies come up with different numbers, but generally that’s kind of a rule of thumb, the ripple effect.”
Some of the small tool support companies to Goodyear have already had to cut back on their employment numbers, Mullins said.
“That’s everything from office supplies to vending machines in the plant,” he said. “Those jobs will all be reduced for a while, and we’ll have to wait for other sectors of the economy to pick up to make that up.”
In 2005, plant-related revenues for Tyler area taxing districts totaled $10.46 million, according to Impact DataSource information. This included sales and use taxes, property taxes, utility fees, hotel-motel taxes and state school funding.
OTHER LOSSES
Not only will the Goodyear workers and some in other industries lose out when the plant reduces its staff. Charitable giving in the Tyler-Smith County area will also sustain a loss.
The plant is known for being a large contributor to the United Way of Tyler/Smith County.
LaJuan Hollis, United Way interim president, said contributions from the plant totaled $95,024 in 2006. The entire 2006 campaign totaled $2.13 million.
“They gave hundreds of thousands of dollars to charities all over Tyler and Smith County, and tens of thousands of dollars just to United Way every year,” Mullins said. “And they’ve given not only as a company, but also the workers collected money. It was very impressive, and that will be a big loss.”
Other activities have included providing gifts to the Youth & Family Enrichment Center and helping disadvantaged children by inviting them to the union activity building for lunch, toys and clothing for Christmas.
It has also contributed to higher education efforts in East Texas.
The union has a scholarship association that is funded by the company and the union, Wansley said. Company and union representatives serve on the association board.
Some scholarships for Tyler Junior College, The University of Texas at Tyler and Trinity Valley Community College are endowed and will continue regardless of the plant’s future, he said. But additional at-large scholarships will be reduced.
Through both mechanisms, Goodyear has given as many as 50 scholarships of $1,000 per year, Wansley said. The downsizing or potential loss of Goodyear would cut the scholarships by probably two-thirds.
“We will have one-ninth of the people we had before, so the impact on the community would be felt in a lot of ways,” he said.
Other charitable events have included providing gifts to the Youth & Family Enrichment Center, and helping disadvantaged children by inviting them to the union activity building where they are given lunch, toys and clothing for Christmas, officials previously said. The children are from identified day-care areas in the community.
Workers have also given to the community through blood drives and collecting food for the East Texas Regional Food Bank.
PLANT HISTORY
In May 1961 Goodyear chose Tyler as the location of the new plant. The plant produced its first tire, a 6.50-by-15 passenger tire, on April 27, 1962.
Since 1962 it has manufactured hundreds of millions of tires, employed thousands of people and contributed millions of dollars to the United Way, based on information provided at the 40th anniversary.
The plant started in 1962 making bias tires to fit the then-popular 13-, 14- and 15 inch rim sizes. In 1985, it was the first plant that Goodyear converted from a bias tire plant to a radial tire plant.
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