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Posted

If an employer and union pick one of several alternate schedules under a rehabilitation plan in year 1, I understand that the schedule remains in effect until the end of the CBA, even if the plan sponsor changes the schedules. My question is - at the end of the collective bargaining agreement, say year 3, if the employer and the union cannot agree on wage concessions to pay for the schedule that was chosen in year 1, can they at that point opt for the default schedule under the rehab plan?

  • 2 weeks later...
Posted

The law allows the parties to rely on the schedules adopted by the parties for the remainder of the period. I do not think it requires them to do so. I would assume that they could open up the CBA and adopt another schedule. Of course, the current default schedule could be worse than the alternative offered in the initial CBA year. Also unclear is how the Trustees would handle the adjustable benefits of these particular participants.

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