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PACE International Union Takes Aim at Taiwanese Company for Issuing False Information

NASHVILLE, Tenn., Nov. 25, 2003 -- The Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) is taking aim at Taiwanese-owned Continental Carbon Company over a company news release that blames pollution lawsuits on a labor dispute in Oklahoma and misrepresents the current state of labor negotiations.

The company's news release followed a November 17 ruling by a U.S. District Court in Alabama in an air pollution case brought by residents, local business, and the City of Columbus, Georgia. According to David Byrne, one of the attorney's representing the plaintiffs and who gave PACE permission to release his statement, "Continental Carbon's characterization of the ruling was not true. The court did not grant class certification because the nature of the plaintiffs and their claims for damages were so different. The court's ruling only means we will be proceeding with many lawsuits instead of one."

Continental Carbon's news release stated that PACE "filed or prompted" several environmental lawsuits in order to gain collective bargaining concessions in a protracted labor dispute at the company's Ponca City, Okla., plant.

"The lawsuit in Alabama was filed because people were sick and tired of being peppered by the company's carbon black pollution, pure and simple," said Byrne.

The company further states that it "prevailed on all of these lawsuits" filed to date.

"There is no evidence that Continental Carbon prevailed in any environmental lawsuit of which we are aware," said PACE Director of Special Projects Joseph Drexler. "We believe that the company is trying to deceive the public and its customers."

PACE has filed two environmental lawsuits against Continental Carbon in Oklahoma and Texas, alleging pollution violations that endanger employees, nearby residents and the environment. The first lawsuit alleged violations of federal hazardous waste laws at the Texas and Oklahoma plants. It was settled out-of-court to the satisfaction of both parties. According to PACE, the company's statement that it "prevailed" in the case violates terms of the settlement agreement, and new action against the company may be considered.

The second lawsuit was filed by PACE and the Ponca tribe of Oklahoma, alleging violations of the Clean Water Act at the Oklahoma facility. Continental Carbon has not prevailed to date in this case. In fact, it has lost and is appealing the initial trial court decision.

Two separate lawsuits alleging pollution damages similar to those being claimed by citizens in the Alabama case were filed in Oklahoma State court by air pollution victims living near the company's Ponca City facility. Both cases preceded the labor dispute and were settled out-of-court when the company agreed to pay the air pollution victims, and in some instances buy their property.

According to Drexler, "The company's news release is an all too familiar attempt to shift blame and deny responsibility."

"Continental Carbon's news release attempts to extricate itself from the deplorable environmental and labor relations practices that have also harmed their customer and community relations," said Drexler. "The company, contrary to its news release stating that 'mutual success' should be possible based on the labor agreement reached with PACE in Sunray, Texas, has refused to propose anything similar to the Texas contract to end the 2 1/2 year lockout in Oklahoma."

PACE union members in Ponca City were locked out by Continental Carbon in June 2001, after they refused to accept a new collective bargaining agreement that would have cut their wages and benefits by 30 percent and gutted the union contract. An itinerant work force with little or no experience replaced the union workers.

Goodyear Tire, once the company's largest customer, stopped purchasing carbon black, a filler and cohesive material used in the manufacture of tires, after discovering that Continental Carbon had allegedly delivered defective product. PACE believes high employee turnover at the Oklahoma plant contributes to pollution and product quality problems and that other customers have stopped buying carbon black from the company.

Continental Carbon is controlled by the Koo family of Taiwan. The Koo family also controls Chinatrust Bank that operates in the U.S.

PACE represents 300,000 workers in paper, chemical, oil, auto parts, atomic energy, grain milling and cement industries in the U.S. and Canada.

For further information on Continental Carbon's labor and environmental problems, see www.fightbackonline.org .