S&P: Goodyear on watch

Standard & Poor's said it placed its B+ corporate credit rating on Goodyear Tire & Rubber Co. on CreditWatch with negative implications because of the potential for business disruptions and earnings pressures that could result from the ongoing labor dispute at some of its North American operations.

The agency said that about 15,000 employees at 14 plants in the United States and Canada went on strike on Oct. 5.

According to S&P, the employees are represented by the United Steel Workers and Goodyear's contract with the USW expired on July 22, although negotiations for a new contract continued until early October.

The company's main priorities for a new labor contract are to lower legacy costs, reduce its high cost footprint, and improve productivity, while the union is focused on preserving job security protections and employee benefits, S&P said.

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