HANOVER, Germany (Jan. 26, 2005) — Continental A.G. and the union representing workers at its tire plant in suburban Hanover have negotiated a compromise over Conti's planned phase-out of passenger tire production at that factory.
The main feature of the deal is Conti's pledge to initiate no job cuts before year-end 2007 and to open up job opportunities at the plant's truck tire production and research and development (R&D) areas, according to the union, the IG Bergbau, Chemie, Energie. Conti's original plan, announced in November, called for up to 320 job cuts by year-end 2006 at the plant in Stoecken.
Conti said a working group consisting of management and employees´ council members will be formed to analyze future perspectives for the plant. The compromise has yet to be approved by the responsible employee representative groups.
“I am confident that, with this compromise, we have taken an important step in the right direction together,” said Continental board member Thomas Sattelberger, who is responsible for human resources and labor relations. “We want to have reached a final, mutually acceptable agreement by the middle of February.”
Conti also stated its executive board had listed the possibility of adding a high-tech cell for truck tires at Stoecken with some 30 new jobs. Also, the company said, it plans to boost R&D with additional jobs in 2006. And finally, the company mentioned the future possibility of increasing the number of trainees.