Guest terric Posted February 14, 2005 Posted February 14, 2005 There are two profit sharing plans (same employer). Plan A allows everyone in including union employees. Plan B excludes union employees. The employer would like to merge Plan A into Plan B. The intent is to no longer cover union employees. What issues are there in doing this - is it even allowed? Thank you for any input.
Effen Posted February 14, 2005 Posted February 14, 2005 Was this merger and subsequent union exclusion negotiated with the union? If not, you are most likely violating the contract. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Guest terric Posted February 14, 2005 Posted February 14, 2005 My understanding is that the employer created this plan on their own - no union involvement.
Effen Posted February 14, 2005 Posted February 14, 2005 They may not have been involved when he gave it too them, but I would expect them to be involved when he tries to take it away. That said, I find it hard to believe that he just "gave" his unionized workers something without asking for something in return. I suppose it's possible... just not probable. Maybe a labor lawyer can chime in here. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
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