Lawsuit alleges Whirlpool’s right to alter Maytag retirees’ health benefits

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Whirlpool’s lawsuit filed in U.S. District Court in Des Moines last week seeks to alter Maytag retiree health benefits to the same level as Whirlpool retirees receive. Time will tell whether Whirlpool is successful, but judging from the lawsuit, Whirlpool believes it’s well within its rights to alter the benefits for Maytag’s retired union workers once the current contract expires July 31. According to the lawsuit, which names UAW and several Maytag retirees, Whirlpool proposed modifying Maytag health benefits during a negotiation session on July 1. Under the proposal, all current and future Maytag retirees would receive the same level of health benefits that Whirlpool’s employees do. Whirlpool currently has roughly 3,000 union Maytag retirees, their spouses and dependents and more than 10,000 Whirlpool and non-union Maytag retirees. A phone call to a Whirlpool representative seeking information on the company’s health benefits was unreturned by presstime. In the lawsuit, Whirlpool alleges, “There is no provision in any of the collective bargaining agreements that restricts the Company’s right, specifically reserved in the employee benefit plans, to amend, modify and/or discontinue the retiree benefits provided under the employee benefit plans upon expiration of the collective bargaining agreements.” The lawsuit further alleges that Whirlpool can modify the benefits following the expiration of the 2004-2008 Supplemental Insurance Agreement, noting that document reads: “This agreement shall ... remain in effect until 12:01 a.m., July 31, 2008, and thereafter from year to year, unless either party notifies the other, in writing, at least sixty days prior to any expiration date, or a desire to change, modify or terminate this agreement on the expiration date.” However, the lawsuit itself notes that Whirlpool proposed the changes on July 1, only 30 days ahead of the July 31 expiration date and less than the 60 days noted.

Andy Karr can be contacted at 792-3121 ext. 434 or via e-mail at akarr@newtondailynews.com.