Continental Tire North America Inc. (CTNA) is progressing with its plan to suspend tire production at its Mayfield, Ky., plant by the end of the year.
Cost saving proposals presented by the United Steelworkers of America last week were not sufficient "to bridge the gap between the Mayfield plant and other CTNA facilities," according to CTNA officials.
The Mayfield factory is CTNA´s most expensive production facility to operate.
"The company cannot continue to operate a plant that is not cost competitive," says Nick Fletcher, CTNA vice president of human resources.
"The proposal made by the union simply did not go far enough to address the cost disparity between Mayfield and our other tire plants."
CTNA announced plans to suspend production in Mayfield for an indefinite period of time last June, impacting 700 hourly and 115 salaried jobs.
"CTNA and the union will continue negotiations to discuss the effects of the company´s decision on Mayfield employees. The company is confident that an agreement can be reached to ease the transition for employees adversely affected by the suspension of tire production at the plant."
