Employers Face Tough Decisions On Retiree Benefits

Law360, New York (May 8, 2008, 12:00 AM EDT) -- Scaling back on retiree medical benefits continues to pose huge legal risks for employers, especially those dealing with unions. But employment experts say the alternatives are far worse if employers fail to address the issue.

General Motors Corp., Ford Motor Co. and Chrysler LLC have all faced lengthy union negotiations and a series of lawsuits after moving away from offering full health coverage to their retirees.

Under pressure from international competition, skyrocketing health care costs and a growing retiree base, employers cannot afford to put off...
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