United Rubber, Cork, Linoleum, and Plastic Workers of America. Local 19: Records, 1933-1992

Biography/History

1917 Gillette (Safety) Tire Company formed by R.B. Gillette in Eau Claire, Wisconsin.
1919 Gillette workers organize as Rubber Workers Union #16454.
1929 Wage incentive plan (Bedaux system) initiated.
1933 Gillette workers form Federal Labor Union No.18684.
1935 International Union of United Rubber Workers of America formed. Federal Labor Union No.18684 becomes Local #19.
1936 United Rubber Workers of America affiliates with the Congress of Industrial Organizations (CIO). First major successful strike of the Rubber Workers takes place against Goodyear in Akron, Ohio.
1937 Recognition of URWA Local #19 as collective bargaining agent for wage employees at Eau Claire plant.
1938 First written contract between Local #19 and Gillette.
1940 U.S. Rubber acquires Gillette.
1942 U.S. Rubber sells the plant to the U.S. government and converts the plant to an ordnance factory.
1943 Election of Local #19 as bargaining agent for Eau Claire plant office workers.
1944 Reconversion of the Eau Claire plant back to tire production. National War Labor Relations Board orders voluntary check off, maintenance of membership, and weekly pay period in response to union demands.
1945 URWA changes to the United Rubber, Cork, Linoleum and Plastic Workers of America (URCLPWA).
1947 Local #19 votes to establish a consumers' cooperative.
1969 #1 Banbury automated.
1974 Management implements cost cutting measures which eliminate overtime.
1975 URW Local 19 workers give company a million dollars in concessions for capital investment in Eau Claire plant.
1977 Cost relief programs implemented.
1981 Management implements JSIP (job security investment program). Giant-off-the-road (GOTR) and monoply truck tires phased out of production. Conversion to radial tire production “radialization.” Plant slated for shutdown (again)--no equipment to make radial tires, which the market demands. 25 million dollars in concessions to company for new equipment.
1982 ECAP (employee cost adjustment program) implemented.
1983 Total Quality Management concepts introduced at Eau Claire. Concession of $1.25 per hour to make radial tire production possible at plant.
1985 Clayton and Dubilier Inc., a New York based private investment firm that specializes in managed buyouts, buys Uniroyal Inc. (according to union lawsuit time line; not mentioned in Wall Street Journal however).
1986 Merger of B.F. Goodrich and Uniroyal to form Uniroyal Goodrich.
1987 B.F. Goodrich sells its half share of Uniroyal Goodrich Tire (UGT) to Clayton and Dubilier Inc. Buyout financed through 560 million dollars in high-risk high-yielding junk bonds issued by Drexel Burnham Lambert Inc. Uniroyal CEO gets a 1.6 million dollar bonus.
1988 Contract includes many “give backs” to save the company money and prevent plant closing. Workers give back 63 cents per hour, and waive one week vacation and 3 paid holidays--concessions totaling somewhere between $14 million and $41 million. In return they receive a guarantee that the plant will not be closed in the next 3 years, as well as a Stock Appreciation Rights (SAR) program.
1989 Michelin Tire Corporation buys UGT from Clayton and Dubilier for about $690 million ($1.5 billion including the company's debt). Eau Claire City Council approves a $2 million loan, in return for a promise the plant will be kept open until March 1991. Company also received $920,000 federal grant (Title IX).
1990 Michelin acquisition approved by U.S. Department of Justice. Temporary 10 percent layoff at plant. Uniroyal Goodrich purchased by Michelin.
1991 On January 8, UGT announces it will close the plant in 1992. Phase out plan includes stopping radial tire production in July 1991 (with a loss of 500-600 jobs), and eliminating all other jobs in 1992.
1992 Local 19 files a lawsuit against UGT, Michelin, and Clayton and Dubilier, seeking $145 million plus triple damages. First attorney Jack Blum is replaced by Michael Shaw.
June 26--final closure date.
July 11--Local 19 drops lawsuit after accepting $2.88 million settlement. Final vote 201 to 198.
April--Michael Shaw is fired as attorney and sues the union for unpaid legal fees and a share of the settlement. Union claims settlement was part of 1988 contract, in which Shaw was not involved. Shaw loses suit. A countersuit in which the Local accuses Shaw of filing a “frivolous” suit is won by Shaw.