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Steelworkers File Class Action Lawsuit against Continental Tire for altering Retiree Health Care Benefits
For Immediate Release December 21, 2006
(Pittsburgh, PA) -- United Steelworkers (USW) retirees and their union have filed a class action lawsuit against Continental Tire North America, Inc. (CTNA) to force the tire maker to uphold its obligations to thousands of retirees, spouses, and surviving spouses to provide retiree medical benefits throughout retirement.
The lawsuit was filed December 13, 2006 in the U.S. District Court, Northern District of Ohio, Western Division.
The retirees allege CTNA breached agreements promising lifetime insurance coverage by announcing that effective on various dates in 2007 it will shift a large part of the cost of retiree medical coverage from the company to the retirees and surviving spouses. CTNA’s violation of those agreements is actionable under the Labor Management Relations Act (“LMRA) and the Employee Retirement Income Security Act of 1974 (“ERISA”).
The retirees claim the rights to receive retiree medical benefits were earned and vested over decades of service at the tire and rubber facilities of CTNA. Rights to retirement benefits were created through collective bargaining between CTNA and the Union that had represented the retirees while they were employed. Virtually the same language from these agreements promised lifetime retiree medical benefits for retirees and spouses at CTN |