(Adds detail on company's latest offer, background, byline)
By Susan Kelly
CHICAGO, Aug 18 (Reuters) - Goodyear Tire & Rubber Co. and the union representing 19,000 of its employees were still talking on Monday in an attempt to reach a labor agreement after five days of marathon sessions.
"Negotiations continued through the weekend. There have been marathon sessions; a lot of paper going back and forth," said Wayne Ranick, spokesman for the United Steelworkers of America.
"Both sides are working hard to see if we can get to a settlement that works for both parties."
Negotiators talked past a Friday afternoon deadline and continued working day and night over the weekend, spokesmen for both sides said. Contract talks began in March, broke off in June and resumed two weeks ago.
"The continuation of the discussions is still seen as a positive," said Goodyear spokesman Chuck Sinclair.
"They talked round the clock for three straight days. By mutual consent they had a little rest last night and are back at it this morning."
The union said it was analyzing the company's latest offer, which was made on Sunday afternoon.
Goodyear had threatened to move ahead with unilateral cost cuts if an agreement with the union was not reached by Friday. The company did not specify whether those plans included job cuts or plant closings.
The Akron, Ohio-based tire maker has lost $1.3 billion in the past two years and is expected to lose money again this year.
In April, the company told investors it plans to cut costs by about $1 billion to $1.5 billion by 2005 to reduce capacity and turn around the company. As part of that effort, it is seeking wage and benefit concessions from the union.
The Steelworkers have sought to preserve job security and health care benefits and have maintained the company must first restructure debt and invest in its U.S. plants to keep them competitive.
Goodyear has already eliminated its dividend, stopped matching 401(k) retirement contributions, refinanced loans and put its chemicals unit up for sale.
The Steelworkers said negotiations with Bridgestone Corp.'s Firestone unit and Michelin's Goodrich/UniRoyal plants in the United States have been suspended until an agreement with Goodyear is reached. A Goodyear contract would serve as a template for those talks.
Goodyear ranks behind Michelin of France and Bridgestone of Japan in terms of worldwide sales.