CTNA Tells Mt. Vernon Workers of Cutback, Capital Plans - Tire Review Magazine

CTNA Tells Mt. Vernon Workers of Cutback, Capital Plans

(Akron/Tire Review) According to a story last Friday in the Benton (Ill.) Evening News, workers at Continental Tire North America’s (CTNA) tire plant in Mt. Vernon, Ill., are being asked to accept a 10% wage decrease, a 50% increase in insurance costs, vacation cuts and a pension freeze.

CTNA announced Jan. 12 that it planned $60 million to $70 million in capital improvements at the 32-year-old plant but also said it was seeking the cutbacks, which reportedly will be implemented Mar. 1.

The Evening News story said that employees were called to special meetings at the passenger and light truck tire plant late last week to hear an outline of CTNA’s plans for the plant. Alan Hippe, CTNA’s president and CEO, met with the employees.

When it announced its plans for the plant on Jan. 12, CTNA said it was “a major initiative to ensure long-term viability” for the Mt. Vernon plant, the only CTNA tire plant that hasn’t suffered cutbacks or shutdowns over the past three years. CTNA’s Mayfield, Ky., tire plant was shuttered in December 2004, and its Charlotte plant faces a nearly 50% cut in employment yet this year.

The capital infusion, said CTNA, “will improve efficiency and increase productivity through a combination of capital improvements and the restructuring of tire operations to bring overall manufacturing costs in line with global competition.”

While news media were not permitted to attend the employee meetings, the newspaper said, some plant workers it spoke with after the meetings were upset. 

You May Also Like

Continental’s ContiConnect Lite to allow digital tire management for OTR tires

Continental said ContiConnect Lite helps fleet managers monitor the condition of their tires via bluetooth.

ContiConnect-Lite-OTR

Continental launched ContiConnect Lite, a new version of its digital tire management app, which the company said creates a bridge between tire sensors and professional tire management and offers a free-of-charge gateway to selected ContiConnect features. Continental said it can also now be used on tires with an integrated Gen2 sensor. Since this year, Continental has been delivering its off-the-road (OTR) radial tires with a bluetooth-enabled sensor. In addition to OTR tires, Continental said it also offers digital tire management to its truck tire customers.

Hana Technologies signs license agreement with Michelin for RFID tire tags

Since its inception, Hana Technologies has spearheaded the manufacturing of over 150 million RFID tire tags.

Handshake agreement
Continental debuts new sustainably-focused U.S. headquarters in South Carolina

The building’s 840 solar panels are capable of offsetting up to 25% of its total energy consumption.

Front-of-Continental-Americas-HQ-1400
Yokohama Rubber reveals 2024 motorsports activity plan

Yokohama said participation in motorsports activities is crucial to its efforts to strengthen the Advan and GeoLandar brands.

Yokohama-Nitrocross
Tesla Model 3 TPMS service

Resetting and programming TPMS sensors for a Tesla is a lot like any other vehicle, and the challenge is still the same: keeping the light off.

bendpakEVgarageTPMS-1400

Other Posts

TIA’s Advanced Farm Tire Service training to take place in June

The training class for technicians in the agricultural and farm tire industries is set to take place June 11-14.

TIA_training-
Three spark plug service and replacement tips

How to avoid and overcome roadblocks that may come up during the removal or installation of spark plugs.

Continental-sparkplug
Maxxis-sponsored athletes make podium, overall top 10 at Mint 400

Maxxis athletes Michael McFayden, Ethan Ebert and Trey Gibbs had podium finishes at the Mint 400 on Maxxis RAZR XT tires.

2024-mint400-maxxis
Sun Auto Tire reveals winner of Ford Bronco Sport giveaway

Lowell Anderson entered the giveaway at his local Sun Auto Tire & Service store while receiving a routine oil change.

Sun-Auto-Bronco-giveaway