PITTSBURGH (June 10, 2005) — Continental Tire North America (CTNA) Inc.'s proposed deal to sell its Bryan, Ohio, off-the-road tire plant is contingent upon the proposed buyer reaching a new labor contract with the union local there, according to the United Steelworkers (USW).
Charlotte, N.C.-based CTNA notified the state of Ohio June 3 of its pending sale of the facility to Rosler Group, an OTR tire supplier and retreader based in Dortmund, Germany. 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,” Mr. 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.