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17 July, 2005
The United Steelworkers of America (USWA) and German-based Continental Tire are in disagreement over severance and health care benefits for 700 workers about to be sacked due to a plant closing in Mayfield, Kentucky. The company announced earlier this year it was discontinuing manufacture of auto and light truck tyres effective 31 December 2004 in Mayfield. The USWA on 17 September submitted a US$20 million costs-savings proposal to Continental, but the company rejected it, stating investment and lower-cost tyre production from Brazil, Mexico and China is the firm’s priority. Continental will maintain warehousing and a mixing unit in Mayfield, employing only 200 workers.