Continental Tire begins labor negotiations with union

Oct. 20, 2005

Continental Tire North America Inc. has begun negotiations with the

United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) for a new labor agreement at the Charlotte, N.C., tire manufacturing plant.

Although the current labor agreement between the parties does not expire until April 30, 2006, CTNA requested that the USW begin negotiations at this time to address high manufacturing costs at the Charlotte plant.

"CTNA has informed the union that the Charlotte plant has the highest

manufacturing costs of any Continental tire plant worldwide," says Rick Ledsinger, CTNA's vice president of human resources. "By working together with our employees and their union representatives, we hope that we can negotiate a new agreement that will reduce our manufacturing costs and assure the future success of the Charlotte plant."

CTNA's Charlotte plant produces approximately 25,000 passenger and light truck tires per day for original equipment and replacement customers.

The Charlotte plant currently employs approximately 900 hourly production and maintenance employees. The hourly employees are represented by the USW and its Local Union No. 850.

The current labor agreement between CTNA and the USW went into effect Sept. 20, 1999.