USW Blasts Continental Tires' Public Statements Regarding Charlotte Plant; Steelworkers: Job Security is a Top Priority Throughout Tire Industry

PITTSBURGH--Feb. 1, 20067, 2006--The United Steelworkers (USW) expressed outrage today over the public statements made yesterday by Continental Tire North America (CTNA) vice president of Human Resources and chief negotiator Rick Ledsinger. In a release touting a new proposal seeking $32 million in drastic cost cuts, Ledsinger said "it was time for the union to get serious about preserving jobs in Charlotte."

"It's an insult for him to state publicly that the USW or the Local 850 leadership is not serious about the company's slash-and-burn proposal at the Charlotte, NC plant," said USW executive vice president Ron Hoover. "We've been working for months trying to engage the company in a constructive dialogue on how to maintain production in Charlotte.

"Right now, as we're evaluating and costing-out the company proposal given to us on February 16, one thing is noticeably absent. There are absolutely zero job security provisions to maintain future productivity in Charlotte."

Job security provisions are quite standard in master contracts that exist between the USW and major tire producers such as Goodyear, Bridgestone-Firestone and BFGoodrich/Michelin.

"Unfortunately Ledsinger has been part of a management group that has spent two decades eroding Continental's market position in North America. The one consistency during this entire period has been their efforts to gain unfair competitive advantage in the market place when it comes to labor costs," said Hoover. "These problems weren't created overnight and they're not going to be fixed in a flash."

Both sides have agreed to resume talks in Charlotte on February 20-21.

The USW represent more than 850,000 workers in the U.S. and Canada. Some 70,000 are employed in the tire and rubber industry.