MAYFIELD, Ky. (Nov. 10)—Continental Tire North America Inc. has presented a severance package proposal to employees who will be laid off as a result of the indefinite suspension of tire production at the Mayfield plant.
The offer, made during negotiations Nov. 4-5 with United Steelworkers of America Local 665, includes lump-sum severance payments of up to $8,000 for the most senior employees. It also offers preferential hiring rights for laid-off Mayfield employees at other Conti Tire North America plants; would create a special transition assistance fund for the benefit of laid-off workers, with Conti putting more than $1.1 million in the fund; and includes an agreement to rehire laid-off employees if tire production resumes at Mayfield.
Negotiations with Local 665 will continue Nov. 18-19. Union officials couldn't be reached for comment.
Tire production is slated to cease by the end of the year, with the facility to be used for mixing and warehousing operations. The moves will cost 700 hourly and 115 salaried workers their jobs.