Continental's Announced Layoffs in Charlotte Reflect Company's Inability to Adapt to the U.S. Market, Says USW

Success in highly competitive markets depends on innovations that result from constructive dialogues and close collaboration of labor and management

PITTSBURGH, Jan. 10 -- The United Steelworkers (USW) greeted Continental Tire North America's (CTNA) announcement of the layoff of 435 Charlotte, N.C. workers with stinging criticism of management's failure to understand how to compete in North America. Unlike other companies that have chosen to work with the union to develop strategies to win market share, Continental appears determined to service its shrinking demand in the U.S. and Canada with imports from low-cost countries.

"Unlike successful companies, Continental never developed a rational marketing strategy nor made adequate investments in product research and development," said USW executive vice president Ron Hoover. "Instead of developing a constructive dialogue with its workers and their union, and pursuing new solutions, this company keeps repeating its mistakes while demanding labor concessions."

Continental announced yesterday that it plans to lay off 241 hourly workers at its Charlotte plant on March 13 and another 194 on June 30. Last November, the company demanded $32 million in wage concessions at the plant and threatened that production could be cut.

"We remain open to the possibility of investigating ways to maintain production in Charlotte," said USW Local president Mark Cieslikowski. "It's up to the company to decide whether they will disclose information vital to generating the sincere dialogue required to come up with real solutions."

The USW represents 850,000 hourly workers in the U.S. and Canada. Some 70,000 are employed in the tire, rubber and plastics industry, including 1,000 at the CTNA Charlotte plant.

   CONTACTS:
   Wayne Ranick (412) 562-2444
   Mark Cieslikowski (704) 756-4985 or (704) 756-4985