The award is unusually high compared to others recently granted to French workers.
Continental announced in March it would close its site in Clairoix, northern France, as well as its plant in Hanover, Germany, in response to a global collapse in orders.
Workers at Continental, whose highly publicised protests had become a symbol of blue-collar resistance, had refused the 17,000 euros in compensation first offered by the German company.
Management on Friday offered the company’s 1,120 workers in France a pay-off starting at 50,000 euros, which would reach up to 100,000 euros for those working for the company for more than 30 years.
Employees would receive their normal salary until October and 85% of their pay until 2011 and unemployment benefit, or 75% of their salary, until 2014.
The French staff agreed to accept the offer on Saturday and unions said they expected to sign a formal agreement with Continental directors in a little more than a week.
"Solidarity paid off," said Xavier Mathieu, Continental’s CGT union representative. "For three months, our mobilisation never weakened … this demonstrates that power belongs to the people."
Continental workers’ protests included hurling eggs at directors, burning tyres in central Paris and protesting in front of the company’s headquarters in Hanover.
Workers’ actions in France against lay-offs have become increasingly violent, with some even detaining managers in their offices to strengthen their hand in negotiations.
Continental did not respond to requests for comment on Sunday.
Continental union representatives said they planned to join workers at rival tyre maker Goodyear to protest against the U.S. company’s plans to cut over 800 jobs in France.
French unemployment climbed by 2.4% in April against March and by 24.6% against a year earlier as companies continued to axe jobs in the recession.
According to the most recent figures from the European Union statistics office Eurostat, France’s jobless rate in March stood at 8.8%, just below the euro area average of 8.9%. (Tire Review/Akron)
