The Supreme Court has ruled that a chemical company may cut the health benefits of retired workers, rejecting a presumption that health-care benefits have vested in an employment contract. The decision, M&G Polymers USA, LLC v. Tackett, unanimously reverses a Sixth Circuit decision that had adopted a presumption that health care benefits are considered “vested” unless a union’s collective-bargaining agreement includes clear language to the contrary.In his opinion for the Court, Justice Clarence Thomas wrote: “Courts should not construe ambiguous writings to create lifetime promises… retiree health care benefits are not a form of deferred compensation.” The case was remanded to the Sixth Circuit, instructing the lower court to use ordinary principles of contract interpretation to determine whether the collective bargaining agreement at issue had granted free lifetime health care. In a concurrence, Justice Ruth Bader Ginsburg argued that the retirees could still prevail under the new standard: “No rule requires ‘clear and express’ language in order to show that parties intended health care benefits to vest.” See coverage of the case at the New York Times, L.A. Times, and SCOTUSblog.
The Associated Press reports that a major deal has been reached between the West Coast seaport dockworkers union and their employers. The dockworkers currently handle over $1 trillion worth of cargo per year, and had been concerned about increased seaport automation taking jobs. Negotiations thus stuck not over wages and hours, but primarily over the transit truck bed repair process and policy.
The National Council on Teacher Quality has released a state-by-state report on teacher pension systems. On average, the NCTQ found that 70 cents on the dollar is going towards paying pension debts, rather than funding future teacher benefits, laying the foundation for a potential fiscal crisis.
In international news, Peru’s Congress has repealed a contested law that would have substantially changed the labor code for youths. The Wall Street Journal reports.
Daily News & Commentary
Start your day with our roundup of the latest labor developments. See all
August 5
In today’s news and commentary, a pension fund wins at the Eleventh Circuit, casino unionization in Las Vegas, and DOL’s work-from-home policy changes. A pension fund for unionized retail and grocery workers won an Eleventh Circuit appeal against Perfection Bakeries, which claimed it was overcharged nearly $2 million in federal withdrawal liability. The bakery argued the […]
August 4
Trump fires head of BLS; Boeing workers authorize strike.
August 3
In today’s news and commentary, a federal court lifts an injunction on the Trump Administration’s plan to eliminate bargaining rights for federal workers, and trash collectors strike against Republic Services in Massachusetts.
August 1
The Michigan Supreme Court grants heightened judicial scrutiny over employment contracts that shorten the limitations period for filing civil rights claims; the California Labor Commission gains new enforcement power over tip theft; and a new Florida law further empowers employers issuing noncompete agreements.
July 31
EEOC sued over trans rights enforcement; railroad union opposes railroad merger; suits against NLRB slow down.
July 30
In today’s news and commentary, the First Circuit will hear oral arguments on the Department of Homeland Security’s (DHS) revocation of parole grants for thousands of migrants; United Airlines’ flight attendants vote against a new labor contract; and the AFL-CIO files a complaint against a Trump Administrative Executive Order that strips the collective bargaining rights of the vast majority of federal workers.