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Goodyear Strike Threatens Gadsden's Finances

By Associated Press

Gadsden, AL – Gadsden officials are alarmed about the long-term impact of the United Steelworkers strike at Goodyear Tire and Rubber Company. Gadsden Mayor Sherman Guyton says the strike could have a major impact on the city's finances. He doesn't yet have any dollar amounts on what a strike at the roughly 13-hundred-employee plant would mean to the city. But Guyton says tax revenues generated by the plant are a ``major deal.'' And he hopes a settlement comes soon. Guyton sent a memo after he was sworn in a week ago telling all departments to maintain level funding from last year's budget because the city does not have a budget for the fiscal year that began October First. He says the strike at one of the city's largest employers makes limiting spending even more important. With a payroll of just more than 80 (M) million dollars annually, Goodyear accounts for about one-point-six (M) million of the 12-point-two (m) million dollars the city receives in occupational license fees. The plant is exempt from sales and property taxes. Guyton says the city could lose sales tax revenue because of the strike since less money would be in circulation. The union and Goodyear have tried unsuccessfully since July to reach a labor deal.

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