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Case ID: 2669 | Employment | 09/01/2004
A partial judgment has been entered against Honeywell International, Inc. on behalf of retirees from three auto parts plants formerly owned by Bendix Corporation, who allege that Honeywell--Bendix's successor--failed to honor their guaranteed levels of health and life insurance under a 1976 agreement between Bendix and the United Auto Workers. The action alleges that Honeywell breached its guarantee to the workers and violated the federal Employee Retirement Income Security Act (ERISA). This judgment will not be considered final until all possible appeals have been exhausted.
In 1976, Bendix sold its plants in Detroit, Madison Heights, Michigan, and Elmira, New York, to a Bendix-spinoff named Facet. Employees at the three plants who were worried about Facet's viability were considering early retirement to preserve their Bendix benefits. As a result of negotiations with United Auto Workers, Bendix on April 1, 1976, signed a guaranty agreement promising that the three plants' retirees and workers with at least 10 years of service would receive the same levels of health and life insurance coverage as in the Bendix-United Auto Workers bargaining agreement throughout their retirement. In a May 1976 letter to workers, Bendix stated that it would make up any difference in insurance premiums necessary to provide coverage for benefits. The guaranty provided that the promised level of benefits could be reduced only by an agreement between the United Auto Workers and Facet or its successors. In 1995, United Auto Workers agreed with Purolator Products, which was then Facet's successor, to somewhat reduced benefits by instituting premium caps for workers who retired after October 23, 1995. After a number of corporate transitions, Honeywell became the successor to Bendix, and Motor Components, LLC, became the successor to Facet. In July 2002, Motor Components, without bargaining with the United Auto Workers, notified retirees of the three plants that their health and life insurance benefits would be reduced effective September 1, 2002. Honeywell disclaimed any liability under the 1976 guaranty and refused to pay the difference between the benefits in the 1995 agreement and the reduced benefits instituted by Motor Components in 2002. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Employment Cases of Interest A class action has been filed on behalf of home health care workers employed by Mentor, Inc., a Tulsa based provider of home health services. The suit alleges that workers employed at Mentor between 2001 and 2004 routinely worked more than 40 hours a week but were not paid overtime as required by the Federal Fair Labor Standards Act. The plaintiffs seek an award of the unpaid overtime with interest, attorney’s fees and costs, as well as liquidated damages and equitable relief. The parties have reached a tentative $7.2 million settlement in an action filed against the Washington Department of Corrections on behalf of state corrections officers who alleged that they should have been paid for "pass-down" periods at the beginning and end of their shifts dating back to 2000. Persons eligible to take part in the settlement should contact the attorneys for the class for more information. African American employees who work as managers for the Sodexho Marriott corporation have brought a class action against the food service industry giant, alleging racial discrimination in the company's promotion process. A statewide collective action has been filed in Florida against American Coach Lines of Orlando, Inc. The action is brought on behalf of all current and former employees who have not been paid proper overtime compensation for all hours worked in excess of 40 per week. The action is brought under the Federal Fair Labor Standards Act and seeks back pay, liquidated damages and injunctive and declaratory relief. As a collective action all potential claimants must voluntarily "opt-in" to the case in order to be considered a member of the class. The employees have requested that the court issue notice to all potential claimants. A statewide collective action has been filed in Florida against Professional Enterprises & Construction Corporation The action is brought on behalf of all current and former hourly employees of Professional Enterprises, who since June 2001, were not paid proper statutory overtime for all hours worked beyond 40 per week. The action is brought under the federal Fair Labor Standards Act and seeks statutory and liquidated damages as well as declaratory and injunctive relief. As a collective action, all potential claimants are required to "opt-in" to the action in order to be considered part of the class. The employees have requested that the court issue notice to all potential class members. A class action lawsuit has been filed on behalf of loan originators at Kansas based Bank of Blue Valley, Inc. The loan originators claim that they were supervised, treated, and controlled in the same manner as employees, and required to work hours far in excess of 40 per week. Notwithstanding this, the originators claim, they were paid as independent contractors on a commission basis and the amounts paid were far less than what would be required for employees, for straight pay and overtime, under federal labor laws. The loan originators seek back pay and other damages. |
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