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Goodyear Reaches Severance Deal With French Union Goodyear Reaches Severance Deal With French Union
(7 months later)
PARIS — Striking workers at a Goodyear tire plant in France agreed on Wednesday to accept severance pay that they said was three times as much as the company had initially offered, clearing the way for the facility to close after a bitter conflict that escalated into a “boss-napping.” PARIS — Striking workers at a Goodyear tire plant in France agreed on Wednesday to accept severance pay that they said was three times as much as the company had initially offered, clearing the way for the facility to close after a bitter conflict that escalated into a “boss-napping.”
The agreement provided “significant improvements in benefits” for the 1,173 employees of the plant in Amiens, 150 kilometers, or about 90 miles, north of Paris, Goodyear said in a statement. In return, the dominant union at the facility, the C.G.T., agreed to end the occupation of the plant and halt legal action meant to delay its closing.The agreement provided “significant improvements in benefits” for the 1,173 employees of the plant in Amiens, 150 kilometers, or about 90 miles, north of Paris, Goodyear said in a statement. In return, the dominant union at the facility, the C.G.T., agreed to end the occupation of the plant and halt legal action meant to delay its closing.
The company did not disclose the terms of the settlement, but a union statement said that Goodyear had agreed to pay “three times more severance for all employees” than proposed as part of a plan announced in 2012. The iTele news channel in France cited a union lawyer as saying that the payout would be 120,000 euros to 130,000 euros, or about $163,000 to $176,000, per worker.The company did not disclose the terms of the settlement, but a union statement said that Goodyear had agreed to pay “three times more severance for all employees” than proposed as part of a plan announced in 2012. The iTele news channel in France cited a union lawyer as saying that the payout would be 120,000 euros to 130,000 euros, or about $163,000 to $176,000, per worker.
As is usual in such cases here, the union will seek additional money in a labor court, because, it said, there was no economic rationale for closing the plant.As is usual in such cases here, the union will seek additional money in a labor court, because, it said, there was no economic rationale for closing the plant.
Paolo Ghilardi, a spokesman for Goodyear in France, said on Wednesday that the company would have no comment beyond the statement.Paolo Ghilardi, a spokesman for Goodyear in France, said on Wednesday that the company would have no comment beyond the statement.
Unable to find a buyer, Goodyear said in January 2013 that it would shut down the facility as it was no longer viable in light of conditions in the moribund European automobile sector and structural changes in the tire market.Unable to find a buyer, Goodyear said in January 2013 that it would shut down the facility as it was no longer viable in light of conditions in the moribund European automobile sector and structural changes in the tire market.
Two weeks ago, the dispute attracted international attention when workers held two Goodyear executives hostage after a court ruling against their motion to halt the shutdown.Two weeks ago, the dispute attracted international attention when workers held two Goodyear executives hostage after a court ruling against their motion to halt the shutdown.
This was the second time the conflict cast an unflattering light on labor conditions in France. Last February, a Texas tire magnate, Maurice M. Taylor Jr., wrote a public letter to Arnaud Montebourg, the country’s industry minister, who had encouraged Mr. Taylor to invest in the plant, disparaging the plant’s workers and asking, “How stupid do you think we are?”This was the second time the conflict cast an unflattering light on labor conditions in France. Last February, a Texas tire magnate, Maurice M. Taylor Jr., wrote a public letter to Arnaud Montebourg, the country’s industry minister, who had encouraged Mr. Taylor to invest in the plant, disparaging the plant’s workers and asking, “How stupid do you think we are?”
According to the newspaper Le Figaro, Mr. Montebourg said the accord “now opens the way” to a possible takeover of the site by Mr. Taylor’s company, Titan International. Mr. Taylor had demanded that the conflict be completely resolved before he got involved. Mr. Taylor was not immediately available for comment.According to the newspaper Le Figaro, Mr. Montebourg said the accord “now opens the way” to a possible takeover of the site by Mr. Taylor’s company, Titan International. Mr. Taylor had demanded that the conflict be completely resolved before he got involved. Mr. Taylor was not immediately available for comment.
France has a diversified economy and an educated work force, and its labor productivity ranks among the highest in the world. But the generosity of its labor code to dismissed workers makes employers exceedingly cautious about hiring.France has a diversified economy and an educated work force, and its labor productivity ranks among the highest in the world. But the generosity of its labor code to dismissed workers makes employers exceedingly cautious about hiring.
The French government applauded the agreement. “Now we have to create the conditions for the future of the workers and the site,” Prime Minister Jean-Marc Ayrault wrote on Twitter.The French government applauded the agreement. “Now we have to create the conditions for the future of the workers and the site,” Prime Minister Jean-Marc Ayrault wrote on Twitter.