Good year is looking to cut costs through wage and benefit reductions after reporting a $1.1 billion loss in the last year. The labor contract between the company and the Steelworkers union expired in April, but has been extended as negotiations continue. However, the union has rejected Goodyear's cost-saving proposals and has broken off further talks. A union spokesman says that they are prepared to strike if a compromise cannot be reached. Analysts feel that a strike is unlikely because it is in the best interest of all parties to make sure that the company does not go bankrupt.