Steelworkers battle Continental against ‘Runaway Shop Scheme’

The United Steelworkers of America (USWA) has filed a charge against Continental Tire North America (CTNA) to the National Labor Relations Board (NLRB). The union alleges that the suspension of tyre production at the company’s Mayfield, Kentucky facility, scheduled for the end of this year, is illegal. The steelworkers association claims that the federal government should halt the proposed action.

The charge also accuses Continental of suspending tyre production based on an “unlawful motive” to discourage workers from supporting the union in a forthcoming representation election on 22-24 July.

USWA district 7 (IL, IN) director, Jim Robinson explains: “Strongly supporting the USWA’s charge is 40 years of NLRB case law, affirmed by the Supreme Court, which states that it is unlawful for a company to shut down production at one plant to coerce workers at another facility, of the same company, to vote against union representation.”

The steelworkers’ confederation also claims to have obtained “highly sensitive”, internal company documents, which are said to show the tyre manufacturer’s “anti-union motives and plans.” It is alleged that these files support CTNA’s plans to “manipulate company financial statements, and abuse bankruptcy laws to abandon its workers, retirees and communities.” The union intends to present the ‘evidence’ to the National Labor Relations Board.

The USWA believes it has a strong case to present. It asserts that along with the documents it also has a collection of information concerning: the timing of the announcement to suspend production, and statements made to Mt. Vernon employees in videos and captive audience meetings.

According to the union the NLRB found Continental guilty of having been engaged in ‘massive labour law violations’ in 1999, Charlotte, NC. John Sellers, USWA executive vice President, Rubber/Plastics Industry Conference, voices a strong opinion: “the company was forced into a multi-million settlement of the labour dispute with the USWA. It was the USWA membership, local leadership, staff and legal team that brought CTNA to justice in 1999, and the same USWA efforts will occur in Mayfield, Kentucky.”

In response to the allegations Continental management has declared that during meetings with union representatives where the Mayfield plant was discussed, the United Steelworkers did not raise the issue of improving the efficiency of the facility. Union 665 president Terry Beane, commented: “The only CTNA proposal for saving the plant was to somehow cut $35 million from a $55 million payroll, and management had no proposals for how to do this.”

Billy Thompson, USWA director district 8 (KY, MD, VA, WV), stated: “We firmly believe we will be successful in winning this charge, and that it will result favourably upon the jobs of the Mayfield employees. We are pursuing this charge to save the jobs of the members we represent at Mayfield because that is what a Union does—it protects employees’ rights and jobs, using all legal avenues available. We refuse to let Continental try to get away with its “run away shop” scheme.”