CTNA, Union Agree to Mayfield Severance Plan

(Akron/Tire Review) The United Steelworkers (USW) and Continental Tire North America (CTNA) reached an agreement for CTNA to provide “enhanced severance benefits” to hourly workers who lost their jobs when the tiremaker suspended production at its Mayfield, Ky., tire plant last year. The tentative agreement was finalized 15 September, and the ratification vote was held 30 September.

“We are very pleased that our Mayfield employees have voted to accept our proposed severance package,” said Rick Ledsinger, CTNA vice president of human resources. ““We will make every effort to get these severance and medical benefits distributed to our employees as soon as possible.”

The agreement provides for lump sum severance payments of up to $45,000 for laid off Mayfield employees based on years of service, and an additional $5,500 payment to offset medical expenses.

Laid off employees can also take lump sum distributions from their pension plan. CTNA said that employees waiting a recall to Mayfield jobs will receive weekly payments of $350 for up to 18 months or until they are recalled.

“This agreement was the result of many months of hard work and we can now begin the process of getting these benefits into the hands of our displaced Mayfield employees.“