By The Associated Press

CINCINNATI - The United Steelworkers union broke off contract talks with Goodyear Tire & Rubber Co. after rejecting the company's latest offer, and the union has said it is prepared to strike if necessary.

No new talks were scheduled, union spokesman Wayne Ranick said Saturday.

"The bottom line is we've rejected this offer," Ranick said.

The union's contract with 11 Goodyear plants expired April 19 but had been extended on a day-to-day basis while talks continued. The contract remained in effect Saturday because both sides had agreed to a 72-hour notice before termination.

Goodyear spokesman Chuck Sinclair said company officials were disappointed.

"Both sides have been working since March, and the delay just extends the period of indecision," he said. "Goodyear cannot continue to operate under its current cost structure."

The company has said it needs to trim as much as $1.5 billion in costs by 2005 to shore up its North American tire operations and control costs so it can compete with overseas plants.

The company made its latest offer late Friday, 20 minutes before a midnight deadline.

Ranick said job security, health care for retirees and restructuring debt were among the union's major concerns.

The union represents more than 19,000 active Goodyear workers and 22,000 retirees. It hoped to negotiate a contract that could be applied to other rubber companies, including Bridgestone-Firestone and Michelin.

Goodyear, the world's largest tire company, reported a record $1.1 billion loss for the last fiscal year. It makes tires, engineered rubber products and chemicals in more than 90 plants in 28 nations, and employs about 92,000 people.

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On the Net

Goodyear: http://www.goodyear.com

United Steelworkers of America: http://www.uswa.org