Wednesday, October 27, 2010

3rd Circuit rules bankrupt employer must negotiate retiree health and benefit cuts death

Employers unilaterally in bankruptcy cannot reduce or end the retiree health or death, even if design documents and SPD reserves the right to do so, has established the 3rd U.S. Circuit Court of Appeals. Instead, employers must negotiate cuts with representatives of retirees, using a process outlined in Bankruptcy Code Section 1114. It is irreconcilable with the majority of the judgments below on the scope of section 1114. But as the first judgment of the Court of appeal on this issue, this decision might be influential.  (Select News, July 30, 2010)

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