USW claims Conti wants to slash employee retirement benefits in US

Pittsburgh Pennsylvania - The United Steelworkers' Union USWA has claimed that Continental Tire of North America (CTNA) has unexpectedly announced it may alter benefits for its retirees. USW executive vice president Ron Hoover said the company notified him in writing that CTNA has the right to alter retiree benefits in any way it chooses as soon as the insurance agreement expires.

USWA also claimed that CTNA also asserted that it could reach back and collect past insurance costs from retirees for some benefits paid for during the term of the current agreement. The labour agreement expires on April 30, 2006. Benefits under the insurance agreement continue for another 90 days.

"These benefits were bought and paid for by retirees during their years of faithful service at Continental," said Hoover. "We will not stand for this and will fight it, in court if necessary."

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Press releasefrom USWA