CAT Files Lawsuits Against Unions

Filings in response to retiree suits seeking lifetime ‘no cost’ health insurance that company claims are a breach of contract.

NASHVILLE, Tenn. – Caterpillar filed Wednesday two third-party lawsuits against the International Union; United Automobile, Aerospace and Agricultural Implement Workers of America (UAW); and seven UAW locals.
The complaints respond to two lawsuits by Caterpillar retirees and surviving spouses seeking lifetime “no cost” health insurance. Caterpillar filed the suits against the UAW to ensure the union lives up to contract terms the parties agreed to in 1998 and 2004.
"We think it's a breach of contract for the union to support a lawsuit that attacks the very terms the union proposed, negotiated and ratified during bargaining. The United Auto Workers presented itself as the representative of the retiree plaintiffs at the time their contracts were negotiated-including the terms related to retiree healthcare. Yet the union is now actively sponsoring these lawsuits," said Dan Day, Caterpillar corporate human resources manager. "We are disappointed that instead of abiding by its agreements, the UAW would actively encourage and sponsor the retirees’ litigation.”
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