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Employer's Proposed Changes in Funding Retiree Health Care Benefits Was Not What Parties Bargained For, Sixth Circuit Says
Wolters Kluwer Law & Business Link to more items from this source
May 16, 2014
"An employer's unilateral implementation of individual health reimbursement accounts (HRAs) in place of group health care plans breached the parties' collective bargaining agreements, not because they were 'unreasonable,' but because they were not what the parties bargained for ... [T]he Sixth Circuit found [the collective bargaining agreement] language unambiguous and that it created a vested lifetime right to health care benefits. Upon retirement, the retirees all had company-provided group health insurance coverage, with the employer paying the full premium for that insurance. The HRAs are not company-provided group insurance; they are health care vouchers. They also shifted significant risks from the company to the retirees."

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