Union says CTNA Lied About Charlotte Plans

(Akron/Tire Review) Claiming they were lied to by Continental Tire North America (CTNA) management, the United Steelworkers (USW) blasted the tyremaker’s decision to end tyre production early at its Charlotte, North Carolina plant. “They flat-out lied to us,” USW executive vice president Ron Hoover said. “It’s now apparent that Conti never intended to keep making tyres in Charlotte,” he continued, accusing the company of pillaging active and retired members.

Hoover said the tyremaker told the union that it had to impose a 15 per cent across-the-board wage and benefit cuts 1 May because of high operating costs at the plant, and that without cuts totally $32 million the company would be forced to end production at the plant in September.

Now, Hoover said, the company advanced its shutdown plan by two months, claiming business conditions had worsened, which he said suggests CTNA’s demand for $32 million in savings would not have been enough anyway.

“Not only are they running away from production in countries they determine as other than low-cost, they are pick-pocketing the workers at those plants as a way to raise investment capital to acquire new business lines,” said retired USW executive John Sellers.

Hoover dismissed a statement made by Continental AG chief executive Manfred Wennemer denying the company planned to close the plant. “CTNA’s plans for Charlotte are same as its plant in Mayfield, Kentucky,” said Hoover. “Stop making tyres, but mix just enough rubber where they can try to deny plant shutdown benefits to a thousand workers, many with 20 or more years of service to the company.”

Sellers said that CTNA has long enjoyed a competitive advantage to the major players in the North American market place, when it comes to the cost of labour. “Despite a $2-plus per hour advantage, Conti’s performance here has been weak at best,” said Sellers. “They still don’t understand how the US market differs from Europe, and now they expect the workers to pay the price for the ignorance of their arrogance.”