GOODYEAR Salaried job cuts come as union pact vote nears

The latest round of cuts will bypass the tire maker's Akron headquarters.
AKRON (AP) -- With a union ratification vote coming up on a new three-year contract that could require unpleasant belt-tightening, Goodyear Tire & amp; Rubber Co.'s move to cut about 500 salaried and nonunion jobs could be a gesture of goodwill.
The timing of Thursday's job cuts announcement "very well could be designed to demonstrate that the effort to turn around the company will not be just directed at the union members, but at the corporate level as well," said Martin King, a Goodyear analyst for New York-based Standard & amp; Poor's.
The cuts of management and staff positions at its North American tire operations will be achieved by the end of September. Company spokesman Chuck Sinclair said that the cuts will come from about 2,600 employees salaried or in nonbargaining unit positions.
"When we announced our turnaround plan at the end of last year, we said that difficult decisions would be required," said Jon Rich, president of Goodyear's North American Tire business unit. "This is one of those very difficult actions, but it is absolutely necessary to achieve our cost reduction objectives."
Earlier cuts
Earlier this year, Goodyear eliminated approximately 700 salaried positions, the majority of which were at its Akron headquarters. The latest round of job cuts won't affect the company's operations in Akron, said Amy Brei, a Goodyear spokeswoman.
The cuts were expected from the financially struggling Goodyear, which lost $236.9 million, or $1.35 a share, for the first half of the year. Goodyear shares rose 8 cents on Thursday on the New York Stock Exchange to $6.62.
The company makes tires, engineered rubber products and chemicals at more than 90 plants in 28 countries. It employs about 92,000 people.
Goodyear's turnaround plan includes reducing costs by $1 billion to $1.5 billion by the end of 2005 and possibly selling some nontire businesses.
The company reached a tentative contract agreement Aug. 20 with the United Steelworkers of America, which represents at least 16,000 employees at plants in Ohio, Virginia, North Carolina, Illinois, Alabama, Nebraska, Wisconsin, New York, Kansas, Texas and Tennessee.
The three-year deal, expected to be a tire industry pattern, will be voted on by union members in September.
Goodyear agreed in the proposal to give the Steelworkers a seat on its board of directors as part of the deal, which is unprecedented for the tire industry, a union member said Thursday.
The offer is "a very good gain for the Steelworkers," said Jack Hefner, vice president of Steelworkers Local 2 in Akron.
Sinclair refused to comment on specifics of the deal until a vote is taken.
The contract includes what Hefner said is a partial wage freeze that only allows for cost of living increases.