Talks between Goodyear Tire and Rubber Co. (NYSE: GT) and the steelworkers union have failed this afternoon resulting in an employee strike. Unable to reach a compromise for a new labor contract employees at 16 plants in 10 different states have walked out.

Talks have been on a day-to-basis ever since the old agreement expired back on July 22, but Monday the Steelworkers put the company on notice issuing a 72 hour deadline to reach an agreement. Unfortunately for both sides that did not happen. The main cause for the failure was the fact that in the company's latest labor proposal they included a plan to shut down two of their plants. On top of that the offer included pay cuts and a 2 year freeze on pensions.

A quote from one Goodyear employee on today's developments: "We were hopeful that the company would change its mind," said Al Tomasello, age 64, and a nine year veteran with Goodyear. "They're trying to work us for a 40-percent cut in pay. We're just trying to get what we already have. We're not trying to change nothing."

Pickets started this afternoon outside the company's Akron Ohio headquarters with employees chanting that Goodyear practiced unfair labor practices. Goodyear claims that they were still be able to keep all their plants open and fulfill customer needs, but how long that will be able to last under this strike remains to be seen.

Shares of Goodyear (NSYE: GT) finished out today's session down 0.3% to $14.24 down $0.05.

Michael Fowlkes has worked as a stock trader for 7 years and spent the last 2 years working as an analyst and portfolio manager for an online investment advisory service.