To provide eligible participants with the best possible health care benefits at a reasonable cost, and in a manner that ensures that the Trust remains operational for the longest time possible.
History of the Trust
The Goodyear Retiree Health Care Trust was agreed upon during the 2006 contract negotiations between Goodyear Tire & Rubber Company and Goodyear Dunlop Tires NA (“Goodyear”) and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (“USW”), following an 86-day strike.
In that settlement, Goodyear and the USW agreed that responsibility for health care benefits for USW-represented retirees would be transferred from Goodyear to the Committee for the Goodyear Retiree Health Care Trust (the “Committee”). Following additional negotiations with representatives for a class of retirees who had retired on or before January 1, 2007, a second Settlement Agreement was submitted to the Federal Court for the Northern District of Ohio, which approved that Settlement Agreement on August 22, 2008. On that date, the Trust Fund became effective, and responsibility for the operation of the Trust Fund, as well as the Health Care Plan funded by the Trust, was transferred to the Committee.
As required by the Settlement Agreement, Goodyear made a one-time cash contribution of nearly one billion dollars to the Trust. Additional Trust funding is derived from cost-of-living and profit sharing deferrals from active USW-represented Goodyear employees and monthly premiums paid by Trust participants. Goodyear is not required to make any additional contributions to the Trust. Future funding is limited to deferrals by active employees, retiree premiums and returns on Trust investments.