PACE Union Has Safety Concerns Over Materials Used in Cooper Tires

NASHVILLE, Tenn., April 16 -- The Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) announced today that it has requested information from Taiwanese-owned Continental Carbon Company concerning alleged quality problems with material used to manufacture tires at Cooper Tire and Rubber Company.

PACE has conducted a campaign to educate tire dealers on potential problems with Cooper tires that may be related to substandard carbon black produced at Continental Carbon Company's Ponca City, Oklahoma plant. Carbon black is a reinforcing material used in the manufacture of tires, and experts have informed PACE that substandard carbon black can cause tire defects including tread separation.

PACE has repeatedly pointed out that the lockout and replacement of skilled workers almost three years ago by Continental Carbon in Ponca City and high employee turnover at the plant could create quality problems.

PACE union members were informed in January 2004 by a Cooper Tire official that "disgruntled employees" were responsible for the production and shipment of substandard carbon black in Ponca City.

PACE also believes that new quality problems with carbon black produced for Cooper Tire in Ponca City may have emerged in the last two months, and has asked Continental Carbon to supply relevant information about these alleged quality problems.

"Continental Carbon keeps telling PACE that its quality has improved during the lockout and PACE questions the veracity of that claim. This information should show whether, contrary to Continental Carbon's claims, quality has, in fact, suffered since the lockout, and therefore the company should be required to provide it under the National Labor Relations Act," said Richard Rosenblatt, an attorney representing PACE. "Cooper Tire should also request similar information about quality problems at Continental Carbon's Ponca City plant since the lockout began to protect its customers and the general public," said Joseph Drexler, PACE Director of Special Projects.

In September of 2002, Goodyear Tire stopped receiving shipments from Continental Carbon after the company discovered alleged defective carbon black produced in Ponca City. Goodyear sued Continental Carbon on May 8, 2003, stating it was forced to shut down production in the world's largest tire plant for more than two days. Goodyear stated that it discovered problems with the carbon black through its own independent testing.

In the wake of the Goodyear lawsuit and allegations of defective carbon black being produced by Continental Carbon in Ponca City, Cooper Tire has continued to purchase carbon black from the Ponca City plant. PACE believes that Cooper Tire received similar shipments of alleged defective carbon black at its Texarkana plant at the same time carbon black problems were discovered by Goodyear, and PACE stated so in a letter to Cooper Tire.

PACE has sent information to 20,000 tire dealers who sell Cooper tires, and encouraged them to warn consumers about potential problems. In a legal opinion in The Advocate, a California legal journal, attorney John D. Rowell opined that sellers and distributors may have a duty to warn customers of defects and could be liable "for harm to persons or property caused by the seller's failure to provide a warning after the time of sale or distribution."

PACE union members were locked out in May 2001 by Continental Carbon. According to PACE, the company attempted to gut the union contract and demanded significant economic concessions from each worker. PACE has stated that union workers were eventually replaced by a low-cost itinerant workforce, with little or no experience in operating a highly sophisticated carbon black plant where quality assurance must be high.

PACE maintains that consumers may ultimately pay a high price for the lockout if tire failures are caused by substandard carbon black from Continental Carbon's Ponca City plant.

PACE also believes that Continental Carbon's lax environmental compliance, which the union has alleged is linked to the replacement of experienced workers, is impacting residents who live near the company's plants by increased pollution. According to PACE, current environmental lawsuits against Continental Carbon could amount to millions of dollars in fines and damages.

Other key customers of Continental Carbon are Bridgestone/Firestone and Michelin.

Continental Carbon is controlled by Taiwan's Koo family, one of the richest in Taiwan.

PACE represents 300,000 workers in the paper, oil, chemical, automotive parts, industrial minerals, atomic energy and cement industries. More information on the dispute and Continental Carbon Company can be found at www.fightbackonline.org