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8 October, 2007
Three US congressional members from the US House of Represents have written to American management of Continental AG, asking that they rescind the deep medical cuts made to a retirees’ health care plan when the company closed tyre plants in the US.
Linda Sánchez (California), Stephen Lynch (Massachusetts), and Michael Michaud (Maine), members of the Labor and Working Families Caucus of the US Congress, called on the German company to “promptly fulfil Continental’s contractual obligations to retired workers.”
The letter was on behalf of ICEM affiliate United Steelworkers (USW), which has pressed through court and other actions that Continental’s unilateral change to the health care plan was illegal. Effective 1 March 2007, the rubber maker imposed a US$3,000 annual cap on health care payments for each of 2,500 retired Conti workers and dependents. The USW contends that some retirees now must pay up to US$12,000 per year in out-of-pocket money to cover their health care needs.
On 31 July 2007, a US federal district judge, in a summary judgement in the state of Ohio, ruled that Continental had illegally reduced the benefit levels for retirees and dependents, stating the company must fulfil its contractual obligations with the USW over health care premiums and funding. Continental Tire of North American, the US subsidiary, immediately filed an appeal to that judgement in another US court.
The decision to appeal and delay rightful health care benefits was a blow to former Continental workers in Charlotte, state of North Carolina; Mayfield, state of Kentucky, and Byron, Ohio, where, in 2006, they had already been victims of Continental plant closings.
The US elected representatives, speaking out for fairness and justice, told Continental that its practices were having a devastating impact on its American retirees. The letter stated that considering the 30-plus years of dedicated service by former Continental employees performed, as well as the extraordinary health hazards inside the tyre industry, it is hard to understand the inadequate health care benefits these retirees now receive.