US Labour Charges Against Continental Dismissed

In the US the Regional National Labor Relations Board (NLRB) has dismissed allegations of unfair labour practices filed against Continental Tire North America Inc. by the United Steelworkers of America. The union filed claims against Continental last year, alleging that the tyremaker had withheld information about its intention to close its Charlotte, North Carolina plant from the union before instigating changes that affected production and staffing.

In October 2005 Continental stated that it was beginning negotiations with the USW for a new labour agreement at the plant to replace the one due to expire at the end of April 2006. However tensions between the two parties began to develop by December when Continental’s president Alan Hippe announced the company would not rule out closing the plant should the union not agree to a 35 per cent cut to worker’s pay and benefits. By March 2006 the plant’s closure had been confirmed and in July – the month production ended at Charlotte – the USW took steps to initiate NLRB action against Continental.

NLRB Regional Director Willie Clark Jr. found “insufficient evidence” of a violation against labour laws on Continental’s part, referring to allegations that Continental did not provide information to the union or lawfully reach impasse before taking action, and he stated that “further proceedings are not warranted.”

Negotiations between Continental and the USW regarding various issues related to the cessation of production began last July, and the tyremaker claims the union has opted not to discuss retiree medical benefits since September 5, 2006. As a result of the union’s refusal to bargain on this issue, Continental filed an unfair labour practice charge with the NLRB on March 1, 2007. The NLRB is currently investigating this charge.