Volvo Can't Change Retiree Health Benefits: 4th Circ.

Law360, Los Angeles (July 12, 2011, 4:07 PM EDT) -- The Fourth Circuit on Monday affirmed a district court decision to permanently enjoin Volvo Group North America Inc. from unilaterally terminating or modifying the health benefits of a class of retired union workers, agreeing with the workers’ interpretation of their contract.

A three-judge panel rejected the Swedish automaker’s argument that a negotiated mechanism for changing health benefits, backed by a $3.9 million trust, ended at the expiration of a 2005 collective bargaining agreement, ruling that the structure of the agreement showed the contracting parties had a...
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