Bad Blood Remains After Goodyear Strike

Goodyear Tire and Rubber, the world's third-largest tiremaker behind Bridgestone and Michelin, will ramp up production following the resolution of a nearly three-month-long strike -- but hard feelings remain between management and their unionized employees. The new agreement with the United Steelworkers union, which will affect approximately 14,000 workers, provides for a $1 billion healthcare program for retirees, but will also shutter a factory in Texas. It is expected to save the company $610 million over three years and $300 million a year thereafter. Although the contract was ultimately approved by all 12 locals across 10 states, much animosity was created between management and workers during the strike, souring a previously positive relationship. Now that the strike has ended, Standard & Poor's has affirmed its 'B+' rating on Goodyear's corporate credit and removed Goodyear's debt from negative CreditWatch.

• Sources: Reuters, Business Week, LA Times
• Related commentary: Strike Has Yet to Dent Goodyear's Stock, Most Overbought/Oversold S&P 500 Stocks, Auto Suppliers' Troubles Point To Broader Industry Challenges
• Potentially impacted stocks: Goodyear Tire and Rubber Company (GT). Competitors: Cooper Tire and Rubber (CTB), Bridgestone Corp. ADR (BRDCY.PK), Continental AG (CTTAY.PK), Michelin Group (Euronext: ML)

Seeking Alpha's news summaries are combined into a pre-market briefing called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only a few seconds to sign up.