6 May 2020
Union vote was required as a 5-year contract in 2017 mandated that the plant remain open through 2022
Gadsden, Alabama – The remaining 400-plus members of United Steelworkers Local 12 have approved Goodyear's plan to close its Gadsden passenger tire plant.
Goodyear said the 90-year-old plant will permanently close 6 May.
“Goodyear can confirm that our tentative agreement with the United Steelworkers to close our Gadsden, Alabama, tire plant has been approved by the membership of the local union," Goodyear said.
The move, Goodyear said, will the tire maker to produce premium tires “more cost effectively” and improve the competitiveness of its manufacturing footprint.
The union vote was required as the 5-year union contract reached in 2017 mandated that the plant remain open through 2022; the vote amended the contract to reflect the early closure.
Goodyear disclosed its plans to close the plant in a 23 April 8K filing with the Securities and Exchange Commission. The filing stated that Goodyear expects the Gadsden closure to yield $130 million (€120 million) in annual savings in 2021.
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