FIDUCIARY/ERISA ALERT: No Unilateral Change to Retiree Health Plan Under Collective Bargaining Agreement
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FIDUCIARY/ERISA ALERT: No Unilateral Change to Retiree Health Plan Under Collective Bargaining Agreement

 

Volvo’s unilateral modifications of its retiree’s group health benefits following the expiration of a collective bargaining agreement is a non-starter.  The Fourth District found that since the case involved a collective bargaining agreement, the analysis boils down to the simple matter of the parties’ intentions.  The negotiated agreement limited Volvo’s right to modify retiree health benefits unilaterally, therefore the company’s actions in doing so were contrary to the parties’ intentions. Volvo was ordered to pay the retiree’s lost health benefits as well as attorneys’ fees and expenses.

 

81VOLVO7-20-11.pdf