Union Retiree Health Benefits: Can Reduced Coverage Be Restored?

Recently, it has been reported that some union retirees were stripped of health benefits due to subsequent contract negotiations. In many of these negotiations, the health benefits of active union employees were kept the same but those for retirees were slashed. Many have seen increases in the cost of prescription drugs, yearly deductibles, co-pays, premiums, and other costs, even though there was no increase in their pension. This leaves many union retirees in a precarious position where they do not have the resources they expected.

An employer’s unratified reservation of rights [...] does not abridge employees’ right to bargain collectively.

Similar lawsuits have popped up around the country because it is allegedly illegal for a corporation to negotiate a new contract that reneges on a previous contract. The unions and retirees argued through unfair-labor grievances that since the contract guaranteeing their health care benefits is considered a “past practice” then they should have been able to bargain for them. It has been called by some union members a “watershed moment” for retirees.

On this same topic, the Florida Supreme Court just recently denied an appeal against the ruling of the First District Court of Appeals which stated that the city of Gainesville was required to bargain changes before they were enacted. According to the Gainesville Sun, The Appeals Court had stated that “An employer’s unratified reservation of rights, whether in a retirement plan or in other documents not expressly incorporated into the collective bargaining agreement, does not abridge employees’ right to bargain collectively.”

If you or a loved one is a union retiree and has noticed an increase in the cost of co-pays, prescription drugs, deductibles, out-of-pocket maximums, premiums, or other healthcare costs, your benefits may have been unfairly reduced. Contact a compassionate and experienced union retiree health benefits attorney by completing the form on the right to see if you are eligible to participate in a class action lawsuit to recover benefits which may have been illegally negotiated away from you.