UAW agrees to pay $354.5 million for its own VEBA

Article by Christian A., on February 12, 2015

The United Auto Workers has reached an agreement to shell out $354.5 million for the establishment of an independent retiree health care trust for its employees – the Voluntary Employee Benefits Association. The creation of the VEBA is part of a proposed settlement of a federal lawsuit filed in December 2014 by the union’s retired staff members who opposed the 2013 changes to its retiree health care program.

The amount is consists of $346 million for the VEBA’s creation and $8.5 million for the administration of the benefits, according to the proposed settlement. The trust would also have its own independent board of directors separate from the union.

UAW President Dennis Williams said in a statement that the proposed settlement is similar to the retiree health care settlements that the UAW has reached with General Motors, Ford, and Chrysler with respect to UAW-represented employees and retirees.

He noted that the settlement would create and fund an independent VEBA trust that will provide retiree health care benefits to current and future retirees from the union’s staff.

Three UAW staff retirees and two office employee unions filed the lawsuit against the UAW in December 2014 in the United States District Court for the Eastern District of Michigan in Detroit after the union declined requests to go into arbitration and revisit the benefit modifications made in 2013.

The lawsuit had filed for class-action status. Unions involved in the case are the Office and Professional Employees International Union, Local 494, and the Staff Council of International Representatives – all representing office staff at the UAW. The unions and the UAW have already filed a joint motion for approval of the settlement.

Topics: uaw, united states

If you liked the article, share on:

Comments

Recommended

Back in 2013 was when the first hot hatch was released, that was the original A45 by Mercedes-AMG, carrying a hand-built 2.0 liter M133 turbo mill. It was then then...
by - April 27, 2017
BMW dealers have a problem, a good problem. The demand for the 2017 BMW 5 Series is very high, they cannot attend to all the customers. But actually, supplies are...
by - April 27, 2017
After unveiling the next generation Odyssey at the 2017 North American International Auto Show in Detroit, Honda has officially commenced production of the minivan. As planned, Honda is now assembling...
by - April 27, 2017
All is set for the unveiling of the comeback model for Fisker Inc., founded and led by well-known automotive designer Henrik Fisker. For those who are following Fisker’s latest and...
by - April 27, 2017
Numerous images were leaked at the end of last year. While we’re privileged to have received hints about the anticipated BMW M5 F90, it didn’t give us a full and...
by - April 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries