Continental Tire must fund VEBA — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Continental Tire must fund VEBA

Get PDF file

by on
in Human Resources

Charlotte-based Continental Tire North America has agreed to pay $158 million into a Voluntary Employees’ Beneficiary Association, or VEBA, to continue health care benefits for approximately 2,400 retirees and workers.

The workers sued after Continental reduced retiree health care benefits and instituted a $3,000 annual cap on health care spending in March 2007.

Not so fast, a federal judge ruled in July 2007, saying the company had no right to reduce or terminate benefits. The company will pay $3 million in back compensation to the plaintiffs, and fund the VEBA with $40 million up front and an estimated $115 million in future liability payments.

Leave a Comment

Previous post:

Next post: