National Labor Relations Board rules in favor of CTNA

Oct. 4, 2004

The National Labor Relations Board (NLRB) has dismissed unfair labor charges filed by the United Steelworkers of America (USWA) that accused Continental Tire North America Inc. (CTNA) of violating the National Labor Relations Act by suspending production at its Mayfield, Ky., plant.

"As we have repeatedly said, the company´s decision to suspend tire production in Mayfield was based upon the high cost of producing tires at the plant," says Nick Fletcher, CTNA vice president of human resources.

"The NLRB´s decision confirms that CTNA took this action for legitimate, business-related reasons."

The USWA filed charges in early July that stated the company suspended production for discriminatory reasons. Later that month, the union filed parallel unfair labor practice charges that accused CTNA of announcing the production suspension to dissuade employees at another CTNA plant from voting to unionize.

The union has 14 days to file an appeal.

CTNA plans to indefinitely suspend production in Mayfield by the end of the year, affecting some 700 hourly and more than 100 salaried positions.