Conti Outlines Clairoix Redundancy Package

The deal for Continental’s Clairoix workers first made public by the French CGT union in late May has been officially confirmed. Conti reports that an agreement between its French and German management and trade union and French government representatives was reached on June 6. Upon announcing this agreement, Continental’s Dr. Thomas Winkelmann declared “we are pleased that we have already come up with a solution before the end of the four-week negotiation phase.”

An understanding, as Conti noted in a press statement, was not reached without difficulties. According to the German company, French union representatives “impeded the entire negotiations by rigidly focusing on negotiating the highest possible uniform one-off severance payment” for all affected employees. “The one-off payment of 50,000 euros for each employee is now a component of the overall solution – not more, but also not less, commented Winkelmann.

“We have thus faced up to our social responsibility for the 1,120 employees affected by the planned closure of the plant in Clairoix,” Winkelmann continued. “Now all that is needed is the approval of the French central works council, which will most likely be obtained shortly. We will then be able to explain to each individual employee the exact provisions of the redundancy plan and the next steps that are to be taken.”

Additionally, Dr. Winkelmann thanked French government representative Philippe Gustin, who “contributed substantially” to the negotiations’ outcome. Continental also made clear its position regarding the Clairoix site – the production of passenger car tyres at the French factory will not be resumed. All production employees will, at the latest, be given notice by December 31, 2009.