Conti Reports Solution to Stöcken Factory ‘Conflict’

The conflict regarding plans to end commercial vehicle tyre production at Continental’s Hanover-Stöcken plant has been resolved, the company reports. Continental management, the IG BCE trade union and employee representatives have reached an agreement on a solution that, in Conti’s words, “makes use of all instruments the labour market provides and opens up prospects for 2010.” The agreement will see the suspension of commercial vehicle tyre production at Stöcken as of the end of 2009, a move supplemented by a number of other measures.

“The package is the result of several rounds of intensive talks that came close to being bro-ken off at a number of points. In the end, however, the two sides moved closer and, against the backdrop of a dogged and complex economic situation, faced up to their responsibility,” said Werner Bischoff of the IG BCE Executive Committee following talks on May 19.

“We have proven that we are always ready to discuss reasonable solutions. The government of Lower Saxony played a positive role in seeing the initiative for talks through to a successful conclusion. With the compromise we are taking into account the persistent situation and the ever more devastating collapse of the market, necessitating an adjustment of production output in Europe. The compromise gives us the requisite latitude to operatively optimise our production portfolio already in 2010. At the same time we have instituted a process of negotiations aimed at reconciling divergent interests and putting in place a severance plan that loses no time in establishing clarity as regards the future for the affected segment of the 780-strong workforce,” said Dr. Hans-Joachim Nikolin, member of the Continental Executive Board for the Commercial Vehicle Tires division.

According to a statement released by Continental, the compromise worked between the respective parties is essentially made up of the following components:

Due to the massive drop in demand in Europe, commercial vehicle tyre production will be suspended at the Hanover-Stöcken plant as of the end of 2009. For the remaining employees, the short-time work scheme will be used 100 per cent for the duration allowed for by law. The company will maintain a production ‘cell’ with a potential capacity of 500,000 tyres through to the end of 2010, with 300 employees required for the operation of this cell. In late June 2010 a decision will be taken on the basis of foreseeable market development at that time on whether the production cell is to manufacture in 2011.

Jobs will be created for 50 employees as part of the Stöcken plant concept, says Continental. Plant management and the workers’ council will ‘come to terms’ on a ‘socially acceptable’ severance plan to allow around 200 employees to leave the plant in 2009. A further group of approx. 225 employees will be phased out of the plant workforce over the first three quarters of 2010 on the basis of a reconciliation of interests and a severance package. In the event that the market does not allow for operation of the production cell in 2011, the cell’s 300 employees will be phased out of the workforce through to the end of 2010 on the basis of the interest reconciliation/severance package negotiated.

”Integrated into the compromise are components of the position paper negotiated this year, especially as regards the use of short-time work and continuing education. What is more, a final decision on the future of production will not be taken until mid-2010. In this way we win time and are given extra options; this was very important for us,” said Michael Deister, employee representatives at the Stöcken plant.

The conflict between the tyre manufacturer and union and employee groups, notes Continental, resulted from plummeting demand for commercial vehicle tyres in Europe in the wake of the economic crisis. As a consequence Continental has had to adjust production capacity downwards by more than two million tyres per year at plants in Puchov, Slovakia, Otrokovice, Czech Republic; and Hanover-Stöcken, Germany.