Bridgestone/Firestone Announces
Production Adjustment Plan
- Production of P235/75R15 Replacement
Tires for Safety Recall Will Continue Unabated
- Temporary production cutback
will occur in three U.S. plants
- Decatur facility will remain
open but operate with about 75 percent of current hourly
workforce
NASHVILLE, TENN. (October 17, 2000)
– In a planned effort to adjust
for an oversupply of certain non-recall replacement tires, Bridgestone/Firestone,
Inc. will curtail tire production at its LaVergne, Tenn. and
Oklahoma City, Okla. plants for 28 days between now and year-end,
the company announced today. At the same time, the company
will layoff approximately 450 people at its Decatur, Ill. facility
for an indefinite period, effective Oct. 29th. The plant will
also curtail production for 14 days in December.
For employees affected by the cutback
in production schedules, the company will provide benefits consistent
with the company’s policies and collective bargaining agreements
with the United Steel Workers of America (USWA). Generally,
this means that affected employees will receive up to 80 percent
of their usual wages during the temporary downtime, when state
unemployment benefits are included.
Those Decatur employees who are being
laid off for an indefinite period will receive payments consistent
with the company’s policies and collective bargaining agreement
with the USWA.
“Production of replacement tires
related to our safety recall will continue uninterrupted,”
said John T. Lampe, chairman, chief executive officer and president
of Bridgestone/Firestone.
“Throughout this recall, we have
continually increased the production of P235/75R15 replacement
tires,” added Lampe. “Our efforts to maximize production
continue unabated.
“We now have replaced more than
4 million recalled tires, and are solidly on target to complete
this effort by the end of November. Through our 13,000 authorized
outlets, we are currently replacing about 80,000 tires a day.
The completion of our recall remains our highest priority,”
said Lampe.
The layoffs in Decatur, and the production
downtime in Decatur, LaVergne and Oklahoma City, are being taken
to reduce tire inventories, which are in oversupply for the
following reasons:
- Increased inventories established
earlier in the year in anticipation of a possible work stoppage,
which was averted when the company successfully negotiated
new contracts with the USWA, which were ratified on Sept.
21, 2000.
- A decrease in demand for Firestone
brand tires.
- A shifting market trend to larger-sized
tires.
While Oklahoma City will idle all production
during this period, LaVergne will produce about 7,000 tires
a day during the first two-week interval. Following the layoffs,
it is expected the Decatur plant will produce 10,000 –
15,000 tires a day. The three plants will be idled during the
second curtailment period.
“Certainly, there is no good timing
for this kind of an announcement, but I feel it is important
that we inform our employees now so they can begin to plan for
the impact this news will have on their lives,” said Lampe.
“I have made a commitment to our
employees and our customers to rebuild this organization and
the Firestone brand,” added Lampe. “In order to keep
that promise, this company must be financially strong and viable.
These are the necessary, but painful, first steps to ensure
that financial health and viability.”
About Bridgestone/Firestone, Inc.
Nashville-based Bridgestone/Firestone,
Inc., is a subsidiary of Bridgestone Corporation, the world’s
largest tire and rubber company. Bridgestone/Firestone manufactures
and markets Bridgestone, Firestone, Dayton and house and private
brand tires. The company also produces Firestone air springs,
roofing materials, synthetic rubber and industrial products.
The company employs approximately 35,000 employees in North
America.
