Union: New contract must precede Conti's sale of Ohio tyre plant

Pittsburgh--The United Steelworkers union has reminded Continental Tire North America Inc. the company's plan to sell its Bryan, Ohio, off-the-road tyre plant is contingent upon the proposed-buyer reaching a new contract with the union.

The Charlotte, North Carolina-based tyre maker notified the state of Ohio of its pending sale of the facility to the Rosler Group--an OTR tyre supplier and retreader based in Dortmund, Germany--on June 3. In that contingent notice, CTNA said it "intends to transfer substantially all of the assets of the Bryan plant to the purchaser if the transaction is consummated," and that it anticipates Rosler will retain all the employees.

However, John Sellers, USW executive vice president, said June 9 the successorship clause in the union's contract with the company specifically requires that the proposed buyer negotiates a new contract with the USW prior to the completion of the sale.

"Unlike the claims made by CTNA spokespeople, the employment of Bryan workers cannot merely be transferred over to the buyer," Sellers said. "Negotiating a new contract is a must."

Earlier, a CTNA spokeswoman confirmed the notice and that employment of Bryan workers will be transferred over to the buyer.

CTNA's sale of the Bryan OTR facility will conclude July 31 or within 14 days thereafter, according to CTNA´s notice.

From Rubber & Plastics News

Press release from USW