News From USW: Steelworkers Not Surprised by Continental's Threat to Cease Tire Production at Charlotte Plant; ''Another Step in CTNA's Pre-Determined Plan to Abandon the North America Market,'' says USW

PITTSBURGH--March 10, 2006--The United Steelworkers (USW) said today that Continental Tire North America's (CTNA) announcement to suspend tire production in September 2006 is not a surprise.

"The news today is totally consistent with CTNA's inability to understand and operate in this environment," said USW executive vice president Ron Hoover. "We view it as another step in CTNA's pre-determined plan to abandon the North America market."

"CTNA is incapable of devising business and marketing strategies to enable them to compete here," said Hoover. "Instead of conducting the required research and product development and making the needed capital investments to improve its plants, this company just looks to take money out of the pockets of its workers."

The USW and CTNA have been engaged in talks to see if maintaining the Charlotte productivity is possible. The company has demanded $32 million in yearly concessions, without ever really demonstrating the need for these savings. The USW has offered proposals to reduce costs and to improve productivity and efficiencies. CTNA has flat-out refused to look at ways to enhance productivity.

"Its refusal to provide necessary information and its inadequate bargaining proposals have hindered negotiations and violate federal law," said Hoover. "Unlike other companies in this industry, CTNA refuses to engage us in a productive process that would yield a business plan to preserve the production of tires in Charlotte and the long-term viability of Continental in North America."

"It stopped production at its plant in Mayfield, KY about a year ago and is now actively seeking to sell its Bryan, Ohio facility. It has extracted concessions from workers at its Mt. Vernon, Illinois plant and is spending enough money there to patch together production as it brings its new Brazilian plant up to speed."

CTNA claims that it made the announcement due to the pressures of the global market and to the skyrocketing costs for raw materials, energy and health care. While acknowledging the fierce competitiveness of the current marketplace, Hoover noted that Goodyear announced earlier this week its highest net profits in seven years and that Bridgestone/Firestone recently declared a rise in net earning of 58 percent. Like CTNA, both companies have master contract agreement with the USW.

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.