Employer does not want to offer health coverage despite collective bargaining agreement

[Guest JD698]

An employer with a current collective bargaining agreement with a union wants to drop health coverage due to financial problems. The collective bargaining agreement provides for health insurance to be provided to the employees after contributions are made on behalf of the employees. Can this be done?

Further, this same employer was making contributions for employees who are not union members. The employer wants to drop them from coverage and receive a credit for monies paid for these non-union employees. Is this a problem?

Any thoughts and/or direction would be appreciated

[Guest JTrini8302]

If there is a CBA in place, my understanding is that both the ER and the union are required to comply with the CBA. If the ER does not, such as attempting to eliminate medical benefits, the union may take action (including legal, depending on the text of the CBA) on behalf of the affected union EEs. Action may include strikes, public denouncement, boycotts, you name it. Let's remember GE, the UAW, and the SEIU strikes now going on started on behalf of supermarket EEs in California and other states.

Generally, any changes to a CBA need to be approved by both sides, anyway.

In an environment where you have union and non-union workers, benefits can differ but I've never seen non-union EEs without benefits totally, where union benefits remain.

I STRONGLY suggest the ER seek legal counsel before they continue.