News From USW: Labor Board Charges Continental Tire With Unlawfully Relocating Charlotte Production; Charges Confirm USW Complaints That Company Purposefully Short-Circuited Bargaining Process

News From USW: The United Steelworkers (USW) received
notification today from the National Labor Relations Board (NLRB) that
complaints were issued against Continental North America (CTNA) for
unlawfully relocating its Charlotte, North Carolina production. The
NLRB charged the company with refusing to provide information
requested by the USW during negotiations and that it also failed to
examine all avenues to reach a settlement before unilaterally
implementing its "last, best and final offer."
"It became increasingly obvious during negotiations that Conti
didn't intend to bargain in earnest," said USW executive vice
president Ron Hoover.
From the onset of talks this spring, Continental demanded that
only an agreement, which provided $32 million in annual concessions,
would be considered. Despite multiple requests for documentation, the
company never did explain how it concluded that it needed that amount.
Without these savings, Conti threatened to cease tire production in
September 2006. In March, it laid off 114 workers and another 166 more
in May. An additional 360 are scheduled for lay-off this week.
During negotiations, the USW submitted proposals that would have
yielded $16 million in cost savings through wage and health benefit
concessions, increased production and production efficiencies, and
cost-controls on spiraling health care and prescription drug costs.
Even though the parties were making progress in negotiations, the
company short-circuited bargaining by wrongly claiming that talks had
reached an impasse when the April 30 contract deadline arrived.
It then implemented its proposal that cut costs by $32 million
annually. Included were drastic wage cuts and major increases in the
cost of health care coverage for both active and retired members.
Still, it was only eight days later that the company announced it
would cease tire production in July 2006 and relocate it to other
facilities. The hourly workforce would be reduced from nearly 1100 in
July 2005 to less than 100, leaving intact mixing, warehouse and
maintenance operations in order to avoid paying pension and insurance
obligations as outlined in the contract's plant closure language.
"Our members do not view this as a victory," said USW Local 850
president Mark Cieslikowski. "A victory would be achieving a contract
with long term job security. We see these charges as validation of our
statements that the company presented us with an unjustified 'take it
or leave it' proposal."
Under the NLRB's procedures, the Company has the right to request
a trial of the evidence against it. NLRB remedies in the case could
include: orders to reinstate employees laid off since March 2006,
resume production operations and reimburse employees for lost wages
and benefits.
Overall, the USW represents some 70,000 members in the tire,
rubber and plastics industry and 850,000 in the U.S. and Canada.