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15 May, 2006
Continental AG, the German tyre manufacturer, wasted little time in slamming shut the negotiation process by announcing the closure of a union-represented plant in the US. Despite an offer by the United Steelworkers (USW) on 28 April to cut labour costs by US$16 million in order to keep an auto and light-truck tyre plant in Charlotte, North Carolina, operating, the company said the cuts were not enough.
Managers then stormed out of talks and issued a formal letter stating negotiations had reached impasse. On 1 May, a day after expiration of a collective agreement for 800 rubber workers, Continental implemented its basket-load of cuts, totalling US$32 million, and announced tyre production in Charlotte would cease altogether by the end of September.
USW / IGBCE Press conference in Hannover
“We consider this action unlawful and will take every step to see that the company’s action is reversed,” said USW Exec. Vice President Ron Hoover. The union has filed a US labour law charge against the impasse declaration and the unilateral implementation of pay and benefit cuts amounting to 35%.
On 5 May, USW took its fight for job retention and fairness in Charlotte to the company’s AGM in Hannover, Germany. The US Steelworkers, led by former Rubber Sector Chairman John Sellers, were joined by rubber manufacturing representatives of IGBCE in planning and implementing a protest and setting up a press conference denouncing Conti’s harsh and abrupt actions.
The company, which sacked 140 Charlotte workers in March, says it will fire another 170 workers this month, with 480 slated to go in mid-September. Continental said only 200 workers will remain after September, performing mixing, calendaring and warehousing duties, while tyre production will shift to a non-union plant in the US and to plants in3 Mexico and Brazil. Continental realized record profits in 2005, as well as seeing share gains topping 25%.