HANOVER, Germany (May 22, 2009)—Continental A.G. management staff, the IG BCE trade union and employees at Conti's Hanover-Stocken plant have worked out an agreement to suspend commercial tire production at the site as of the end of 2009, but keep a cell operating through at least 2010.
Plant management and the workers' council will come to terms on a severance plan to allow about 200 employees to leave the plant in 2009.
Conti will maintain a production cell with 300 employees and a capacity of 500,000 tires through to the end of 2010. In June 2010 Conti will re-examine the foreseeable market development and whether the production cell is to manufacture in 2011.
Jobs will be created for 50 employees as part of the Stocken plant concept.
A further group of about 225 employees will be phased out of the plant work force over the first three quarters of 2010 on the basis of a reconciliation of interests and a severance package.
In the event that the market does not allow for operation of the production cell in 2011, the cell 's 300 employees will be phased out of the work force through to the end of 2010 on the basis of the interest reconciliation/severance package negotiated.