Companies Sue Union Retirees To Cut Promised Health Benefits

[JoeChalupa]

This is just wrong in my book.

http://online.wsj.com/article/0

The following excerpt is from the 11/10 Wall Street Journal. Yet another example of the worker getting screwed. This must be fought and I hope they don't succeed.

--When a deputy sheriff came to his door with a court summons, George Kneifel, a retiree in Union Mills, Ind., was mystified. His former employer was suing him.

The employer, beverage-can maker Rexam Inc., had agreed in labor contracts to provide retirees with health-care coverage. But now the company was asking a federal judge to rule that it could reduce or eliminate the benefit.

Many companies have already cut back company-paid health-care coverage for retirees from their salaried staffs. But until recently, employers generally were barred from touching unionized retirees' benefits because they are spelled out in labor contracts. Now, some are taking aggressive steps to pare those benefits as well, including going to court.

--

[gophergeorge]

Where do I find the "Book of Joe"?

I'd like to read it... :)

[Hook Dem]

This is just wrong in my book.

http://online.wsj.com/article/0

The following excerpt is from the 11/10 Wall Street Journal. Yet another example of the worker getting screwed. This must be fought and I hope they don't succeed.

--When a deputy sheriff came to his door with a court summons, George Kneifel, a retiree in Union Mills, Ind., was mystified. His former employer was suing him.

The employer, beverage-can maker Rexam Inc., had agreed in labor contracts to provide retirees with health-care coverage. But now the company was asking a federal judge to rule that it could reduce or eliminate the benefit.

Many companies have already cut back company-paid health-care coverage for retirees from their salaried staffs. But until recently, employers generally were barred from touching unionized retirees' benefits because they are spelled out in labor contracts. Now, some are taking aggressive steps to pare those benefits as well, including going to court.

--
Joe ...this is not just a "union" concern. The company I retired from, is now cutting "free" medical benefits from retired management employees. The retirees are having to pick up hefty premiums thus depleting their pensions. Along with that, there has been only one small increase in pensions over a 10 year period.

[1369]

Unfortunately, this is just a sign of what's to come. I don't think you can blame any particular administration (Although, there are those who will try to pin it on both sides of the aisle.

Bloated promises made by companies for concessions from employees, and now as companies try to keep up with the almighty stock reports and investors expectations, they're finding out they just can't honor both.

In my book (So sayeth the shepard), the companies made the deal, they should stick with the deals they made.

BTW, my company has done a ton of work for Rexam (Formerly American National Can), and if I'm not mistaken, they're not doing too well these days.

[JoeChalupa]

I think this is a moral issue.
What is right is for these workers to keep their benefits.

[Yonivore]

Nothing's free people.

[JoeChalupa]

It's not free. They worked and earned it.

Am I wrong?

[spurster]

This is a problem with company-provided benefits. Companies can renege on their promises in all sorts of ways. And if they didn't have any insurance to back it up, you are SOL.

[bigzak25]

you are right Joe and I hope those retirees don't get shafted.

[Yonivore]

It's not free. They worked and earned it.

Am I wrong?
Who "earns" free healthcare for life?

[bigzak25]

A deal is a deal.

[JoeChalupa]

If it's in the contract, they earned it.

Just like those who retire from the Military get benefits for life.

They do don't they?

[Yonivore]

I obviously don't know enough about the story to make a comment and should have just kept my mouth shut.

But, I agree bigzak, a deal is a deal...unless, of course, you can find a slick lawyer to come along and legally welch on it.

Anyway, this doesn't really concern me because I'm sick and tired of the entitlement culture in this country. If so much free stuff wasn't being demanded from business and industry, this wouldn't (in all likelihood) even be an issue.

[Hook Dem]

It's not free. They worked and earned it.

Am I wrong?
Unfortunately Joe......you are right but you and I don't have the final say. I think they should honor promises to retirees. They have the option of discontinuing it for active and new employees but we know that isn't going to be the answer. This thing will probably be decided by the courts. Otherwise...as Spurm says "SOL". The sad thing is that these retirees helped build those companies. Now the modern day executives couldn't care less. Business is a cold thing these days. I may be getting old but the trade off prevents me from having to face decades of this. Where's my beer!

[Yonivore]

If the company is going under, they'd lose their benefits anyway, No? Maybe the business is just trying to survive and saw this as one measure to stay solvent.

If it keeps them open and their employees employed rather than throwing everyone off the train, maybe it's a matter of making the best of the worst?

Hell, I don't know...

[JoeChalupa]

I obviously don't know enough about the story to make a comment and should have just kept my mouth shut.

But, I agree bigzak, a deal is a deal...unless, of course, you can find a slick lawyer to come along and legally welch on it.

Anyway, this doesn't really concern me because I'm sick and tired of the entitlement culture in this country. If so much free stuff wasn't being demanded from business and industry, this wouldn't (in all likelihood) even be an issue.

Why do you always think they want something for free?
They worked for it under a legal contract. You throw around the word "free" quite freely. Perhaps you've even benefited from a "free" benefit during your lifetime..then again maybe not.

[Hook Dem]

This whole thing depends on what your situation is doesn't it?????

[JoeChalupa]

If I'm one of those retiree's?...IT SUCKS BIG TIME!!

[Hook Dem]

If I'm one of those retiree's?...IT SUCKS BIG TIME!!
Thats my point Joe! It sucks for me too!