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
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

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: