Earlier this month I wrote about how employees at 16 different Goodyear Tire and Rubber Co. (NYSE: GT) plants went on strike after talks between the company and the United Steelworkers (USW) failed to reach a compromise for a new labor contract. One of the main problems at that time was the decision by the company to close two of its factories. Today the company announced that its plans for closing at least its Tyler, Texas plant are going forward.

With today's news, some 1,100 workers must now face the prospect of looking for a new job. The plant has been in operation since 1962, with an average output of around 25,000 tires per day.

The feud between the company and the USW has not improved and harsh words are being thrown between the two. In reaction to today's news, the USW called the plant closing a slap in the face, and said that Goodyear should be trying to do more for its employees, especially since they took pay cuts, job losses and other concessions back in 2000 in an attempt to help the company get back on its feet.

"Now they seem committed to stripping away health care benefits from those who made the turnaround possible and to further close plants and abandon the business," said Tom Conway, USW vice president . "Their foolishness is outweighed only by their greed." Goodyear claims that the union has refused to help the company remain competitive in an increasingly competitive global economy.