Events Calendar
In This Section
Auto bailout could be tied to government-run overhaul
Oil plummets on dire U.S. jobs figures
Employers cut 533,000 jobs in November, most in 34 years
Merrill Lynch shareholders approve sale to Bank of America
Worried retailers report big drop in sales
One National City executive on PNC leadership team
Most Read Stories
Blogs:
Akron Law Café:
What's Wrong with Incarcerating People for Profit?
Car Chase:
Car Guy* Gatherings
The Heldenfiles:
"Survivor" Results: A Long and Winding Road … to Something Obvious
Patrick McManamon:
Browns GM Phil Savage meets media, defers questions about the future
Browns Bulletin:
Say hello to your new starting quarterback
Cleveland Browns:
Anderson done for season
Cleveland Cavaliers:
Does the LeBron James Saga Finally Die - for Now?
CavsHQ: A Fan's View:
What to Watch For - Cavs v. Pacers
Akron Zips:
Looking ahead to Dayton
Varsity Letters:
‘Gridlocks’ high school football recap
Kent State Sports:
Home winning streak snapped by St. Mary's
Ohio Politics:
Chambliss: Hey, Guess Who Impacted This Race?
See Jane Style:
Holiday Dressing Men’s Edition
All Da King's Men:
Should We Bail Out The Big Three Automakers ?
Blog of Mass Destruction:
Obama's Place In The Center For Moderate GOP'ers
HRLite House:
The ‘House’ Test
Akron Gamer:
Quick holiday game guide
Ohio Travels with Betty:
Where is the house featured in A Christmas Story?
Sound Check:
The Pretenders to play Akron Civic Theatre on Valentine's Day
Let's Talk Real Estate:
Johnny Rockets: A taste of the 50s!
By Beacon Journal staff and wire services
POSTED: 01:33 p.m. EST, Aug 22, 2008
Goodyear Tire & Rubber Co. won federal court approval today for its plan to create a health-care trust for union retirees.
The largest U.S. tire maker, based in Akron, said it will make a one-time, $1 billion payment to the United Steelworkers union fund to cover future costs.
The payment will be made initially from existing cash reserves and available credit lines, Goodyear said.
Creation of the Voluntary Employees' Beneficiary Association, or VEBA, will result in annual savings of about $100 million and boost annual cash flow by about $130 million compared with 2007, Goodyear said.
''Gaining court approval for the VEBA is a win-win for Goodyear and for our current and future USW retirees,'' Chief Executive Officer Robert J. Keegan said in a statement. ''This agreement both protects retiree benefits for years to come and removes a significant legacy obligation from our North American business.''
United Steelworkers Local 2 President Peter Stamich deferred questions to the union's international headquarters personnel in Pittsburgh. Officials there said they were reviewing the court approval and would have a comment later.
Goodyear Tire & Rubber Co. won federal court approval today for its plan to create a health-care trust for union retirees.
The largest U.S. tire maker, based in Akron, said it will make a one-time, $1 billion payment to the United Steelworkers union fund to cover future costs.
The payment will be made initially from existing cash reserves and available credit lines, Goodyear said.
Creation of the Voluntary Employees' Beneficiary Association, or VEBA, will result in annual savings of about $100 million and boost annual cash flow by about $130 million compared with 2007, Goodyear said.
''Gaining court approval for the VEBA is a win-win for Goodyear and for our current and future USW retirees,'' Chief Executive Officer Robert J. Keegan said in a statement. ''This agreement both protects retiree benefits for years to come and removes a significant legacy obligation from our North American business.''
United Steelworkers Local 2 President Peter Stamich deferred questions to the union's international headquarters personnel in Pittsburgh. Officials there said they were reviewing the court approval and would have a comment later.
Comments
Click here to post your comments
