February 13, 2009: Last month UPS dramatically raised the cost of retiree healthcare. Now UPS will have to explain their actions before a judge.
Yesterday, a judge in the U.S. District Court for Northern Illinois set a hearing for March 9. UPS will have to explain to a judge how their midcontract hike in retiree healthcare contributions didn't violate the contract or the law.
In January, UPS management suddenly raised the monthly health and welfare contribution for Local 705 UPS retirees from $50 to $157.58 for a single retiree and $315.17 for a retiree and spouse.
The Local 705 contract with UPS states that “if required, additional contributions would not be implemented until after the expiration of the current collective bargaining agreement.” The agreement runs until 2013.
Local 705 and retirees took action. Members filed a class action lawsuit and bombarded UPS management with letters of complaint. Now they will get their day in court.
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