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AKRON — The Goodyear Tire & Rubber Co. is offering buyout packages to 550 workers at its tire plant in Union City, Tenn., as the company reduces costs due to weak demand.
Goodyear, the biggest U.S. tiremaker, said the downsizing will result in an after-tax restructuring charge of approximately $60 million primarily in the second quarter of 2009.
The Union City plant is moving from a continuous operating schedule to a five-day, three-shift operation on July 6. In May, United Steelworkers members at the plant ratified a local labor agreement that allows the work schedule change.
Goodyear did not disclosed details of the buyout.
The plant can produce about 12 million consumer tires a year for original equipment and replacement tire markets and currently employs about 2,300 workers.
The announcement came after the stock market close. Shares of Goodyear rose 15 cents to $12.23 Friday.
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