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To: RealMuLan who wrote (15324)11/10/2004 12:23:36 AM
From: RealMuLan  Read Replies (4) | Respond to of 116555
 
Companies Sue Union Retirees
To Cut Promised Health Benefits

Firms Claim Right to Change
Coverage, Attempt to Pick
Sympathetic Jurisdictions
The Process Server Pays a Call
By ELLEN E. SCHULTZ
Staff Reporter of THE WALL STREET JOURNAL
November 10, 2004; Page A1

When a deputy sheriff came to his door with a court summons, George Kneifel, a retiree in Union Mills, Ind., was mystified. His former employer was suing him.

The employer, beverage-can maker Rexam Inc., had agreed in labor contracts to provide retirees with health-care coverage. But now the company was asking a federal judge to rule that it could reduce or eliminate the benefit.

Many companies have already cut back company-paid health-care coverage for retirees from their salaried staffs. But until recently, employers generally were barred from touching unionized retirees' benefits because they are spelled out in labor contracts. Now, some are taking aggressive steps to pare those benefits as well, including going to court.

online.wsj.com