Published December 18, 2008 11:15 pm - An appeals court gave thousands of auto industry retirees a boost Tuesday, affirming a lower court’s opinion that Rockwell International Corp. is obligated to provide lifetime health care benefits to former employees and their spouses.
By SHELLEY TERRY - Staff Writer - sterry@starbeacon.com Star Beacon
An appeals court gave thousands of auto industry retirees a boost Tuesday, affirming a lower court’s opinion that Rockwell International Corp. is obligated to provide lifetime health care benefits to former employees and their spouses.
The 6th U.S. Circuit Court of Appeals upheld the trial court’s decision, scuttling an attempt by Rockwell and ArvinMeritor to scale back, and later discontinue, medical coverage for about 2,900 former workers in a dozen plants the company closed between 1970 and 2003.
Rockwell Brake plant in Saybrook Township closed in August 1986.
Judges Boyce F. Martin, Ronald Lee Gilman and David D. Dowd Jr. decided the lower court had correctly granted summary judgment to the plaintiffs because the collective bargaining agreements with the unionized hourly workers unambiguously promised to provide a lifetime of health care benefits.
The defendants argued the insurance agreement limits retiree insurance coverage to the duration of the collective bargaining agreement, but the appeals court determined a durational limitation on retiree benefits must be specific and stated explicitly.
“Yolton requires that a durational limitation must include a specific mention of retiree benefits in order to apply to such benefits,” Gilman said. “Section 8 of the Rockwell/ UAW insurance agreement simply does not include such a specific mention.”
The insurance agreement included only a general limitation, which does not curtail retiree health care benefits to the length of the agreement, Gilman said.
Stuart M. Israel, an attorney for the plaintiffs on the appeal, applauded the 6th Circuit Court’s decision.
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