CTNA Files Charges Against Union

Continental Tire North America, Inc. (CTNA) has filed an unfair labour practice charge against the United Steelworkers union (USW) in relation to its Bryan Ohio OTR tyre manufacturing facility. The announcement follows attempts by Rodos Giants (part of the Roesler Group) to buy the plant. The union refused to enter into a labour agreement with the company.

“The Steelworkers have both legal and contractual obligations to negotiate a new labour agreement with the potential purchaser of the Bryan Plant,” said Rick Ledsinger, vice president human resources, CTNA. “The union clearly violated these obligations by refusing to recognise its agreement with Rodos and breaking off negotiations.”

On 13 January 2005, Continental Tire signed a letter of intent with the Roesler Group (Rodos) regarding the potential sale of the company’s Bryan, Ohio plant. The Bryan plant manufactures radial and bias tyres for use in the construction, logging, mining, forestry and container handling industries and employs over 300 employees.

According CTNA, the 13 January letter of intent specifically provides that the asset purchase is conditioned upon the buyer negotiating an agreement with the union. Rodos had been in negotiations with the Steelworkers since 2 February, culminating in the signing of a memorandum of understanding by both parties on 16 June. Then on 21 June the USW “abruptly” announced that the asset purchase transaction was off because the union could not reach an agreement with Rodos, CTNA reports. The union now denies that the 16 June memorandum was a binding agreement.

In its unfair labour practice charge, Continental Tire claims that the union violated Sections 8(b)(3) and 8(d) of the National Labor Relations Act by repudiating the June 16 Memorandum of Understanding and refusing to engage in any further discussions with Rodos. The National Labor Relations Act is a federal law that requires both employers and unions to bargain in good faith and to comply with any agreements reached in collective bargaining. The company’s unfair labour practice charge also claims that the union violated its 7 December 1999 collective bargaining agreement with Continental Tire by refusing to enter into an agreement with Rodos.

In its charge, Continental Tire is seeking an order requiring the union to comply with the terms of the 16 June memorandum of understanding and to resume bargaining with both Continental Tire and Rodos regarding the purchase.