A district court in West Virginia recently held that retirees were not entitled to lifetime health benefits under the clear and unambiguous language of the relevant collective bargaining agreements. Shortly after Constellium modified retiree health benefits to provide less favorable coverage, the retirees sued, alleging that they had a vested right to the prior level
Retiree Health Care Benefits
GM Not Obligated to Make $450 Million Contribution to Fund Union Retiree Health Benefits
By Lindsey Chopin on
The Sixth Circuit held that GM was not obligated to contribute $450 million to fund retiree health benefits for UAW members because the most recent contract between the UAW and GM extinguished GM’s former obligation to contribute. In response to earlier litigation between the UAW against GM to recover retiree health benefits and a bankruptcy…
Supreme Court Announces “Wipe-Out” of Yard-Man Presumption in Advance of Storm
By Howard Shapiro & Joseph Clark on
With storm clouds threatening in the northeast, the Supreme Court cast a ray of sunlight for employers today by rejecting the use of a problematic inference in adjudicating claims for retiree benefits brought pursuant to collective bargaining agreements.
Federal District Court Tosses $450 Million Retiree Health Care Suit Against GM
By Stacey Cerrone & Todd Mobley on
A federal district court in Michigan dismissed a breach-of-contract suit against General Motors over a $450 million payment for retiree medical benefits. Int’l Union, UAW v. Gen. Motors, LLC, No. 10-11366, 2013 U.S. Dist. LEXIS 173793 (E.D. Mich. Dec. 10, 2013). As part of a settlement agreement with the UAW in 2007, General Motors…
Sixth Circuit Concludes That CBAs Vested Retirees Contribution-Free Health Benefits, Despite Side Letters To The Contrary
By Joseph Clark on
The Sixth Circuit affirmed a district court’s decision granting a permanent injunction in favor of M&G Polymers, USA LLC retirees who sought vested lifetime health care benefits. Tackett v. M&G Polymers USA, LLC, 6th Cir., No. 12-3329, Aug. 12, 2013. In December 2006, M&G announced that it would begin requiring retirees to contribute to…