The Goodyear Tire & Rubber Co. has reached a deal with the United Steelworkers union to freeze its defined benefit pension plan once it is fully funded.
Once that takes place, it will transfer those workers to a defined contribution plan.
The decision followed many years of structural cost improvements and contract changes aimed at reducing the future impact of legacy pension obligations on the company's North American business, said Richard Kramer, chairman and CEO of the company in a statement. It started making some of these changes in 2003, and made additional changes in 2006 and 2009.
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