USW Blasts J.P. Morgan Analyst Patel's Misinformation about Goodyear Strike
Union condemns analyst's "shoddy research"
For Immediate Release November 29, 2006
(Pittsburgh, PA) -- The United Steelworkers (USW) today sharply criticized the latest analysis of the USW-Goodyear strike by Himanshu Patel of J.P. Morgan Securities Inc. as a "deliberate attempt to hype the company's stock through promoting Goodyear's campaign to break the union by creating unfounded fears amongst the membership, families and communities."
Yesterday Patel wrote that "a key date for the strike could be January 3, when health care coverage for striking workers is cut off, which could spur increased pressure from union members to reach an agreement."
"Another projection that's dead wrong by a guy who just doesn't do his homework," said USW International vice president Tom Conway. "We want Goodyear to stop stone-walling and return to meaningful negotiations. But the facts are that the real cut-off date is in mid-April. COBRA legislation gives you 60 days to make a decision to continue coverage and another 45 days before you have to make payment."
"The real problem is how consistently inaccurate his forecasts are. They seriously cloud any possibility of a clear-headed analysis of the strike, and how it might be resolved," said Conway.
In October, Patel wrote that inventory and reduced production should provide supply for around four months. Three weeks ago, the Washington Times and others were already reporting shortages. In the same report, he stated that the USW had only one response -- a strike, and that it had already utilized it, completely ignoring the USW's vast repertoire of strategies to pressure the company in other ways.
"What's most disturbing is that this supposed independent analyst talks exclusively to the company and does nothing but parrot their lines," said Conway. "Other more sophisticated analysts take the time to hear the USW point of view. "Patel's willful ignorance causes him to grossly underestimate our resolve and our ability to impact the company, added Conway. "He needs to either do his research or admit that he is nothing but a shill."
CONTACTS: Wayne Ranick (412) 562-2444