Goodyear Tire & Rubber Corporation Case Study Help Analysis With Solution

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Goodyear Tire Stretches Compensation Dollars
Jobs at Goodyear Tire & Rubber Co., the largest tire maker in the United States, were coveted mainly because everyone from janitors to skilled machine operators could expect to eventually earn more than $20 an hour and generous benefits…..
Detroit’s traditional Big Three automakers reached deals several years ago with the United Autoworkers union that will let them hire a group of workers that receive lower pay and benefits. The new workers will be paid roughly the same amount as Toyota Motor Corp.’s U.S. workers.
Case Questions
1. How does the two-tier system of wages for production workers compare to downsizing as a useful way of reducing operating costs for the company?

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2. What impact might global outsourcing have on the wages paid to tire builders at this Goodyear factory in Gadsen, Alabama?
3. Suppose a new Goodyear tire maker does not want to work for a starting wage of $13. What can he or she do about it?

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