Continental Tire Breaks Off Talks with Steelworkers after Union Refuses to Accept Demands for Concessions

PITTSBURGH--Jan. 1, 20054, 2005--The United Steelworkers of America (USWA) announced today that mid-term contract re-opener negotiations with Continental stopped in Nashville, Tenn., when the company walked away from the table after the USWA refused to accept its demands for concessions. In talks designed to bring Continental's wage and pension benefits up to industry standards, the company instead sought, among other things, to increase retiree medical care costs.

"Continental has historically lagged behind rest of the U.S. industry when it comes to wages and benefits," said John Sellers, USWA executive vice president. "This company seems to feel it has an inherent right to have an unfair competitive advantage over other companies operating in the North America market."

The USWA also announced that it would proceed to file for arbitration regarding the company's shutdown of tire production at its Mayfield, Ky., facility. The company is attempting to avoid paying plant-closure benefits to its senior workforce there, the majority having more than 20 years of service.

Also, the company told the union that it intends to sell its Bryan, Ohio facility, but declined to disclose the name of the potential buyer.

The USWA represents more than 70,000 workers in the tire and rubber industry in the U.S. and Canada. In addition to Continental, the Steelworkers negotiate master contract agreements with other major tire producers such as Goodyear, BFGoodrich (Michelin) and Bridgestone-Firestone.