The workers of the leading tire-manufacturer, Goodyear Tire & Rubber Co, have approved a 4-year labor deal that will prevent the potential closure of the six plants over the approaching period of four years.

The contract protects 6 factories viz. Akron in Ohio; Buffalo in New York; Danville in Virginia; Fayetteville in North Carolina; Gadsden in Alabama; and Topeka in Kansas. 

Under the deal the company would invest $600 million in the six factories to keep them up to date.

The United Steelworkers said the contract provides cover for around 10,300 workers. It may be noted here that the company provides worker for the about 70,000 people worldwide.

Goodyear posted a second-quarter loss of $221 million in July and has cut 5,500 positions since the beginning of the year.

Upheaval in the US auto industry due to recent global economic downturn made the US-based tire-maker to post a loss of $221 million in July from a year earlier.

Goodyear has already axed about 5,500 jobs since the start of current year.

In the recent NYSE composite trading, shares in Goodyear jumped to $17.08, gaining 8 cents.