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Brothers and Sisters,

During the 2019 negotiations, the committees were confronted with several issues that affect not only our BFG facilities, but the tire industry as a whole. The foreign competition in the tire industry has had a dramatic effect on all traditional tire manufacturing plants in the U.S. We are no longer simply challenged to compete with overseas imports; we are now competing with modern automated tire manufacturing facilities from overseas competitors on American soil.

We had previously feared that the MultiStrada acquisition in Indonesia would someday build tires now produced in our BFG facilities. That suspicion was confirmed during a presentation by the company. The company will produce the Uniroyal tires and some other tires used in the Asian, European and American markets at the MultiStrada facility.

Despite these challenges, your union protected contract benefits and negotiated economic improvements for every member and their families. Your union negotiated multiple improvements in wages and compensation detailed in this summary.

Regrettably, the 2006 BFG/USW wage retirees trust contributions are discontinued. The union, after much thought and deliberation, redirected the employee diversion to the economic package. This decision was based upon the cost savings in retiree health care plan changes in 2018.

Your union bargaining committee worked diligently to secure a fair and equitable contract while ensuring competitiveness in the industry.

This summary includes the terms of the tentative agreement. We ask that you carefully read through the summary and ask any and all questions you may have.

In Solidarity,

Your USW BFGoodrich Policy Committee: Local 351 President Brandon Hamner

Local 715 President Terry Cunningham Local 351 Policy Member Scott Dockery Local 715 Policy Member Herb Anderson

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Table of Contents

• Term of the Agreement 4

• Economics 4

o General Wage Increase 4 o Cost of Living Allowance (COLA) 5 o Grandfathered Status 5

• Pension and Insurance Benefits 6

o Health Care for Active Employees 6 o Prescription Drug 7 o Annual Physical Incentive 7 o Defined Contribution Plan 8 o Personal Savings 401(k) Plan 8 o Sickness and Accident 8 o Long-Term Disability 9 o Life Insurance 9 o Optional Contributory Life Insurance 9 o Maintenance Progression 10 o SUB 10 o Minimum Vacation Pay 10

• Other Improvements 11

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Term of the Agreement The proposed Agreement will be effective July 28, 2019, and continue in effect until and including July 30, 2022.

Economics

General Wage Increase - GWI Upon ratification of this Agreement, Level 1 New Tier Employees will receive a $1.36 per hour increase, Level 2 New Tier Employees will receive $1.39 per hour increase, Levels 3, 4, and 5 New Tier Employees and grandfathered that have caught will receive a $0.80 per hour increase and Levels 3 – 5 Technical Maintenance will receive a $0.80 per hour increase in the first pay period following ratification

In addition, grandfathered Employees in Levels 3–5 whose rates have not been caught by the New Tier rate and Technical Maintenance Levels 1 and 2 will receive an annual lump sum of $2,080 upon ratification and on the anniversary dates of the contract.

Wage Job Level Ft. Wayne Tuscaloosa

Level P1 $18.15 $18.25 Level P2 $19.40 $19.50 Level P3 $25.99 $26.11 Level P4 $28.41 $28.54 Level P5 $30.84 $30.97

Tuscaloosa and Ft. Wayne rates reflect different dental diversions.

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Cost of Living Allowance (COLA) COLA continues to have a guaranteed minimum (floor) and maximum (ceiling) during the life of the agreement. The floor is 0.5 percent and the ceiling is 3 percent. All New Tier Employees including those whose wage rate have caught up to the grandfathered employees wage rate along with Technical Maintenance Employees will have COLA increases incorporated for the life of the agreement. The reference point and incorporation rate for New Tier Employees is unchanged and can be found in Appendix “B” E.2. Technical Maintenance will be incorporated at 100 percent at level 1 and can be found in Appendix “B” E. 1.

Grandfathered employees who have not caught will have COLA incorporation put into their wages for the first two years of the agreement. Grandfathered employees, except those where the New Tier rate has caught the grandfathered rate, will receive their COLA rate increases in the form of lump-sum payments for the last four quarters of this agreement. The lump sums will be paid by multiplying the COLA amount by 2080 hours in each of the last four quarters of the agreement. The reference point and incorporation rate for grandfathered employees remains unchanged and can be found in Appendix “B” E 3.

Grandfathered Status Grandfathered Level 1 or Level 2 employees will not be subject to a sunset provision, however when a grandfathered employee leaves those tiers through bidding, or voluntarily leaves the company, they will be paid a lump sum equal to: 2080 times the difference between their current Grandfathered Level 1 or 2 rate and the New Tier level 1 or 2 rate they leave if before July 28, 2020, or 1040 times the difference between their current Grandfathered Level 1 or 2 rate and the New Tier level 1 or 2 rate they leave if after July 27, 2020, and before July 28, 2021.

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Pension & Insurance Benefits

Health Care for Active Employees Your committee understands that health insurance premiums are important to you and your families. We were able to achieve flat premiums for the year 2020, with small increases in 2021 and 2022. Although we do not like any premium increases, this is in line with other union tire contracts and less than the more drastic increases the company wanted. Employees and spouses will both be subject to the Tobacco Surcharge, but it is waived for the year if you and/or your spouse complete the Smoking Cessation Phone Counseling program. Monthly Premiums for Medical and Prescription Drug Plan:

Tier Current 2020 2021 2022 Single $50 $50 $55 $70 Employee + One $105 $105 $116 $147 Family $125 $125 $139 $175 Tobacco Surcharge*

Employee $25 Employee $50 Spouse $50

Employee $60 Spouse $60

Employee $75 Spouse $75

* Any employee or spouse can have the Tobacco Surcharge waived each year by completing the Smoking Cessation Phone Counselling program. If the program is not completed, the Tobacco Surcharge will be owed for the entire year.

With the small changes in premium, we were able to maintain our quality health insurance coverage with modest changes. The changes include a $50 increase to the annual deductible ($100 for non-single coverage) and a $500 increase to the out-of-pocket maximum ($1,000 for families). The OOPM is the most you can be charged in medical coinsurance in one year and it includes your deductible. Over 96 percent of services under the plan are at in-network providers; your committee maintained the in-network benefits. The new plan pays 60 percent on out-of-network services instead of 70 percent. If you use a Blue Cross Blue Shield in-network provider, there is no change to the benefit level. Under the proposed plan, if you use the emergency room (and you are not admitted), you will be required to pay $150, then 20 percent of the remaining charge. This charge cannot exceed your out-of-pocket max. The company proposed a much larger increase to deter emergency room usage, but your committee fought back, understanding our members need access to emergency services without risking financial disaster for their family.

Current Plan Changes Effective 1/1/2020 In Network Out of Network In Network Out of Network Deductible Single/Non-Single)

$300/$600 $600/$1200 $350/$700 $700/$1,400

Out of Pocket Max (Single/Non-Single)

$2,000/$4,000 $4,000/$8,000 $2,500/$5,000 $5,000/$10,000

Coinsurance (Plan Pays) 80% 70% 80% 60% Emergency Room $150 $150 $150, then 80% $150, then $80% Specialist $30 $70% $30 60%

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Prescription Drug (Changes effective 1/1/2020) There are NO CHANGES to the coinsurance on prescription drugs. The minimums and maximums will stay the same as under the prior contract. Increasing drug prices are still the biggest concern in healthcare costs. We maintained your costs by agreeing to some common-sense cost-saving strategies. We will move to a new formulary under MedImpact. You may need to switch from one brand name drug to a different brand name drug used to treat the same condition. If you are affected you will be notified by MedImpact by mail. There will be new management on drugs including quantity limits and prior authorizations to make sure the drug is appropriate and cost-effective. Any benefit denials can be appealed through MedImpact. The company demanded step therapy on 47 different classes of drugs but your committee was able to limit this to 12 classes of drugs. There will be step therapy for new users only of certain drugs. Existing users of drugs subject to step therapy are “grandfathered in” and are not subject to step therapy for those drugs. Some high-cost prescriptions that have no additional medical value will not be covered. Opioid prescription doses will be limited. Current participants exceeding the limit will be grandfathered. Oncology and hospice patients will be exempt from any limit.

Annual Physical Incentive – NEW (Changes effective 1/1/2020) The Annual Biometric Incentive will be eliminated and replaced with an Annual Physical Incentive. Any member or spouse (who is covered under the plan) who gets a physical and required bloodwork will be paid $75, for married members, this is a total benefit of $150. A form will be provided for you to take to your medical provider when you complete your physical and lab work. The form will explain exactly what is required. The required services are covered at 100 percent, but any additional services may not be covered (for instance, additional blood work). The completed form will be sent to the PSC and payments will be made quarterly through payroll.

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Defined Contribution Plan (Changes effective 1/1/2020) Your committee knows that every member deserves to retire with dignity. We worked hard to ensure increases to the DC for everyone and also to make sure anyone hurt by the DB to DC transition could get back on track with their retirement. We have agreed to a new structure based on an annual contribution and not dependent on hours. Current Proposed Age + Service Contribution per hour paid Annual flat contribution -

prorated per pay period Under 30 $0.38 $1,000 30-39 $0.53 $1,400 40-49 $0.78 $2,100 50-59 $1.05 $3,000 60-69 $1.43 $4,400 70-79 $2.04 $6,000 80 Plus $3.17 $8,500

If you are not actively at work but accumulating seniority, you will continue to get the above contributions for up to two years. Long-term disability (LTD) participants will continue to receive contributions for as long as they are on LTD.

Personal Savings 401(k) Plan New hires will continue to be enrolled in an automatic 2 percent employee contribution to their 401(k). Effective 1/1/2020, new hires only will also be enrolled into a 1 percent annual auto increase up to 10 percent. As always, members can opt out of these programs. We also agreed to changes making it less difficult to get a hardship withdrawal. Effective January 1, 2020, the Self Directed Brokerage Option (SDBO) will be limited to 50 percent of your 401(k) balance. Participants with balances above 50 percent in the SDBO as of January 1, 2020, will be grandfathered.

Sickness and Accident S&A claims must be filed within 30 days of your absence from work due to illness or injury. This is a decrease from 45 days. It is incredibly rare for a member to apply more than 30 days after their absence. S&A recipients must return to work for at least 45 days to qualify for a new period of S&A for the same cause. This is an increase from two weeks. There is no requirement for periods of disability due to different causes.

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Long-Term Disability The Long-Term Disability Program is now available for any member with 30 days of service as opposed to 10 years. There will be a new 180-day elimination period prior to the start of any benefits. For the first 24 months of benefits, the definition of disability remains the same. However, we have agreed to change the definition of disability for any LTD benefits paid past 24 months. The new definition requires that the member be unable to perform the functions of any occupation, not just a job in the plant. The current LTD benefit is only payable to age 62 at the latest, however the proposed plan would pay LTD benefits until at least age 65 and possibly longer if your injury occurs after age 60. A member who wishes to return to work after LTD will be returned to work, if at all possible, with medical restrictions. The member will have all service credited (including LTD period) if they have 10 or more years of service. If they have less than 10 years of service, they will be credited with up to 36 months of service depending on their service at the time of disability. Employees on LTD will continue to receive DC contributions, participate in active health insurance and active life insurance. Employees on LTD are required to apply for SSDI and appeal to the highest level and also apply for Medicare parts A and B if eligible. They will be provided with an SSDI attorney for appeals at no cost and a monthly $50 Medicare reimbursement if qualified.

Life Insurance (Changes effective 1/1/2020) Your committee negotiated an increase to Active Life Insurance from $55,000 to $60,000. Optional Contributory Life Insurance (Changes effective 1/1/2020)

Below are the new rates for optional employee-paid life insurance.

Contribution per $1,000 of insurance Age Old rate New rate Under 25 $0.15 $0.034 25 – 29 $0.15 $0.041 30 – 34 $0.17 $0.055 35 – 39 $0.20 $0.062 40 – 44 $0.21 $0.069 45 – 49 $0.24 $0.103 50 – 54 $0.25 $0.158 55 – 59 $0.29 $0.296 60 – 64 $0.34 $0.454 65 – 69 $0.34 $0.873 70 + $0.38 $1.416

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Maintenance Progression Newly hired maintenance employees will be required to attempt to achieve level 4. Employees that do not achieve level 4 within the allowed time limits will be retained as a level 3. A new hire is expected to achieve level 3 within 4 years of being hired.

Supplemental Unemployment Benefits The company agreed to improve funding formula for the SUB account by $.02 in each category.

Column A Column B 300 $.24 550 $.20 750 $.16

Employees with at least one year of service will be eligible for SUB benefits.

Minimum Vacation Pay

Minimum vacation pay for any employee shall be 40 hours times their straight time hourly rate. This only applies to the way minimum vacation pay is calculated.

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Other Improvements Language Additions and Changes

• Article IV Engagement and empowerment • Article VIII On shift assignment for late call offs and early leaves • Article X 3I ASTHE blocks ability to take in quarter shift increments • Article X 3J True reassignments • Article X 3T Guarantees • Article X 3Z New – Local pilots and constraints that include modifications to the

programs to meet local needs. • Appendix A Ability and flexibility for local pilots • Appendix B New hire pay progression • Appendix C Health & Safety fund • Master Letter 35 New - Each facility has the option to pursue quality adjustments in-

lieu of discipline

Local negotiations for both locals were held and concluded as a part of the 2019 master negotiations. Changed references and dates where applicable throughout all agreements.

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