News From USW: USW Blasts Continental Tires' Decision to Accelerate Plan to Abandon Charlotte Production; Steelworkers Accuse Company of Robbing Employees and Retirees Despite Intention to Cease Production

PITTSBURGH--May 9, 2006--News From USW: The United Steelworkers (USW) said it was unconscionable for Continental Tire North America (CTNA) to impose a proposal that drastically cut wages and health care benefits on April 30 only to claim today that high costs would force them to cease production in July.

All during recent negotiations, the company claimed that it needed the cost-cuts imposed to maintain production in Charlotte. Without them, the company claimed, CTNA would be forced to cease production in September 2006. Claiming an impasse in talks, the company arbitrarily made its changes.

"They flat-out lied to us," said USW executive vice president Ron Hoover. "It's now apparent that Conti never intended to keep making tires in Charlotte. Still, it didn't stop them from raping our active and retired members."

"Not only are they running away from production in countries they determine as other than low-cost, they are pick-pocketing the workers at those plants as a way to raise investment capital to acquire new business lines," said retired USW executive John Sellers, who just returned from attending Continental AG's annual shareholders meeting in Hannover, Germany.

Hoover also dismissed claims by made last week by Manfred Wennemer, Conti's CEO, that it was "absolute nonsense" that the company would close the plant. "CTNA's plans for Charlotte are same as its plant in Mayfield, Kentucky," said Hoover. "Stop making tires, but mix just enough rubber where they can try to deny plant shutdown benefits to a thousand workers, many with 20 or more years of service to the company."

Sellers said that Conti has long enjoyed a competitive advantage to the major players in the North American market place, when it comes to the cost of labor. "Despite a $2-plus per hour advantage, Conti's performance here has been weak at best," said Sellers."They still don't understand how the U.S. market differs from Europe, and now they expect the workers to pay the price for the ignorance of their arrogance."

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.