Unions May Be On Hook For Pension Liability, 6th Circ. Says

Law360, New York (March 16, 2012, 6:11 PM EDT) -- Requiring a union to indemnify an employer for any contingent liability to a pension plan established under the Employee Retirement Income Security Act does not violate public policy, the Sixth Circuit ruled Friday in a case of first impression.

In a case that pitted roofing supply company Shelter Distribution Inc. against General Drivers, Warehousemen and Helpers Local Union No. 89., the Sixth Circuit ruled that a collective bargaining agreement provision obligating the union to indemnify Shelter for liability the company might incur through its participation in...
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