Wonderful…
AKRON, Ohio - Goodyear Tire & Rubber Co. said on Monday that it plans to close a plant in Tyler, Texas, three weeks after workers at the plant and 15 others went on strike in part because of the tire maker’s plan to shut down the factory. . . .
The plant, which opened in 1962, has produced approximately 25,000 passenger and light truck tires per day.
More than 12,000 United Steelworkers members in Tyler and elsewhere in North America went on strike Oct. 5 after months of talks with the world’s third biggest tire maker. No new talks have been scheduled.
A message left with the union Monday seeking comment on the plant closing was not immediately returned.
Akron-based Goodyear has said the union refused to agree to help it remain competitive in a global economy. The union said the company’s last proposal would have included two plant closings — the union says the other is in Gadsden, Ala. — and other concessions.
Goodyear said in June that it wanted to leave parts of the private label tire business and that the decision would mean a reduction in capacity. Goodyear previously announced to investors an aggressive strategy to reduce costs by more than $1 billion by 2008.
“We must take the steps necessary to reduce our costs and improve our competitive position,” Jon Rich, president of North American Tire, said in a statement. “While this is an extremely difficult decision for everyone involved, it was required to help turn around our North American business.”
Meanwhile, Democrats are promising to raise the minimum wage if voted into office in November. Many union contracts are based on the minimum wage (which is the real reason why unions support raising it), so if the Democrats raise it over $2.00/hour like they’re promising we’re going to see more businesses cut back on the number of people they employ, just like Goodyear is doing and just like Ford and General Motors have done before that.
If we vote the Dems into office come November we can kiss this strong and growing economy good bye and say hello to mass lay-offs.