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In international news, Peru’s Congress has repealed a contested law that would have substantially changed the labor code for youths.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
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September 9
Wynn Las Vegas employees allege anti-union retaliation; Amazon faces a class action over pregnancy accommodations; H-1B demand plunges following a six-figure visa fee.
September 8
In today’s News and Commentary, workers and unions across America celebrate Labor Day, California’s SEIU Local 1000 prepares for a strike authorization vote, and New York City creates the Office of Worker Power. On Monday, labor unions and workers gathered in cities across the United States in celebration of Labor Day. Parades and rallies took […]
September 7
Eighth Circuit finds DOL order violates Seventh Amendment; 1,300 workers at Encore Boston Harbor go on strike.
September 6
Encore casino workers strike; President Trump commutes sentence of former Philadelphia IBEW leader; Durham labor activist ends his hunger strike against Amazon.
September 4
NLRB advice memo narrows political protest protections; NLRB asks federal appeals court for deference.
September 3
Seond Circuit rejects a NLRB standard for union insignia in employer dress codes; House Republicans ramp up labor union investigations.