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Goodyear, union continue marathon labor talks

By Ros Krasny

CHICAGO, Aug 16 (Reuters) - Goodyear Tire & Rubber Co. and United Steelworkers of America continued marathon talks on Saturday to try to reach agreement on a labor contract for the tiremaker's U.S. plants.

The opposing sides talked right past a Friday afternoon deadline, far into the night and reconvened Saturday after a few hours rest, a company spokesman said.

"Marathon talks continued through the night, and they are still talking Saturday. This is two continuous days of round-the-clock talks," Goodyear spokesman Chuck Sinclair told Reuters on Saturday.

The fact the two sides are still at the bargaining table is "an absolute positive," Sinclair said.

Goodyear has said it will reduce costs if no agreement is reached but it has not specified whether such measures would involve cutting jobs or closing any plants.

Wayne Ranick, spokesman for the United Steelworkers, said it was hard to say when the last-ditch talks would end.

"The committees worked through the night. Progress is being made but it is very hard, hard bargaining," he said.

Akron, Ohio-based Goodyear has lost $1.3 billion in the past two years and is expected to make a loss again this year.

Goodyear told investors in April it planned to cut costs by about $1 billion to $1.5 billion by 2005 to reduce capacity and turn the company's finances around.

The company and the USWA, which represents nearly 19,000 current employees at 14 U.S. plants as well as 22,000 retirees, are at odds on ways to compromise on issues of job security, health care for current and retired employees, and financial restructuring.

Labor contracts expired April 19 at plants that make Goodyear and Dunlop tires and ended July 5 at those that make Kelly-Springfield tires.

Talks on new agreements have been going on and off now for five months.

The expired labor agreements have been extended on a day-to-day basis. Either side can end that arrangement with a 72-hour notice.

To keep the company afloat, Goodyear has eliminated its dividend, stopped matching 401(K) retirement contributions, refinanced loans and put its chemicals unit up for sale.