Sep. 29, 2009 (PR Newswire) -- AKRON, Ohio, Sept. 29 /PRNewswire-FirstCall/ -- The Goodyear Tire & Rubber Company (NYSE: GT) said today that the four-year master labor contract ratified by members of the United Steelworkers union on September 18 achieves the company's objectives and will help it to realize profitable growth by producing tires in North America.

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The new contract enhances the competitiveness of Goodyear's USW-represented tire plants through improvements in productivity, wage and benefit savings and added flexibility. These changes are expected to provide Goodyear with cost savings of approximately $215 million over the term of the contract. Combined with savings realized through pre-bargain agreements to reduce staffing levels at five plants, the company expects to realize $555 million in total savings over the term of the agreements.

"Although we have achieved significant cost savings, the new realities of our industry require that this agreement do more than simply hit a cost-cutting number," said Richard J. Kramer, Goodyear's chief operating officer and president, North American Tire.

"This innovative agreement can truly change the way we run these factories. We can improve our efficiency, flexibility and competitiveness in both the near-term and long-term, driving working capital improvements and allowing us to be more responsive to the needs of our customers."

Kramer said the 2009 agreements build on significant changes made in the 2003 and 2006 contracts and address the core issues impacting the competitiveness of the North American Tire business.