Despite the cuts, employees reported for work and did not strike.
At the same time, the USW condemned the company’s unilateral imposition of lower wages. "We consider this action unlawful and will take every step to see that the company’s action is reversed," said USW Executive Vice President Ron Hoover.
Hoover said the union would file unfair labor practice charges against the company with the National Labor Relations Board.
The tiremaker said it has tried numerous times to reach an agreement with the union and its Local 850, but a huge gap remained between the company’s desire for a $32 million reduction in costs at the Charlotte plant, and the union’s reported final offer of cuts totaling around $17 million.
"Time has run out," CTNA’s Rick Holcomb told the Charlotte Observer. "What it will take for it not to happen is an agreement of savings of $32 million. At this point, it’s not likely."
In addition to the general wage decrease, CTNA also reduced worker health benefits and eliminated pensions. The tiremaker declared an impasse in the negotiations with the union last Sunday, and unilaterally instituted the cuts.
"We were at the table bargaining and were working toward an agreement when the company informed us they felt we were at an impasse," Hoover said. "We were far from an impasse and still have a number of ideas to bridge our differences."