The Herald-Palladium 11/18/2007

UAW files 2 legal actions against Bosch
By MICHAEL ELIASOHN
H-P Business Writer
ST. JOSEPH — The United Auto Workers union has filed two legal actions against the Robert Bosch Corp. Chassis Division on behalf of workers and retirees at the company’s St. Joseph plant.
On behalf of existing workers, the union filed what is called a “charge” with the National Labor Relations Board, accusing the company of failing to bargain in good faith over a new contract.
On behalf of retirees, the union filed a class action complaint in U.S. District Court seeking to stop Bosch from requiring retirees to pay for health insurance, which had been a free benefit in the old contract.
Bosch corporate spokeswoman Becky McDonald said the company doesn’t comment on pending legal matters.
UAW Local 383 represented production and maintenance employees, who make vehicle brakes and brake components in the factory in Lincoln Township.
The four-year contract between the company and union expired May 6th. Members continued working under the old contract while negotiating continued.
On Sept. 18, union members voted down what the company called its “best and final offer.” Three days later, Bosch informed workers it would implement provisions of the offer immediately. Included were a $1.71 per hour pay cut and a four-year wage freeze.
Workers are still on the job. Randall Sherfield, UAW regional representative, said no bargaining sessions are scheduled, but the union is willing to meet with the company.
In October, retirees from the Bosch plant received a letter from the company notifying them that as of Nov. 1, they would be required to “contribute toward the cost of your retiree medical, prescription drug and dental coverage in order to keep your coverage in force.”
According to the class action lawsuit, the now expired contract said the company would pay the “full premium or subscription charge” and that the health care plan would be a “lifetime benefit” for retirees.
! The newly required monthly premium, unless the union is able to stop it, is $398 per month for a single retiree, $796 for a retiree and spouse and $1,194 for a retiree and family.
The charge with the NLRB was filed Wednesday. It says Bosch violated its obligation to bargain in good faith over a new contract by: declaring an impasse and implementing its last proposal, and by refusing to negotiate until the union accepted what the company wanted regarding medical insurance for retirees.
Stephen Glasser, NLRB regional director in Detroit, said an agent has been assigned to investigate. The company and union will be able to provide evidence, and Glasser will decide if Bosch violated the National Labor Relations Act. Either side can appeal his decision.
Glasser said it usually takes from six to nine weeks to conduct an initial investigation and make a decision.
Grand Rapids attorney Michael Fayette said he filed the original class action complaint for the UAW in behalf of the Bosch retirees in late September and an amended complaint on Wednesday. Fayette also filed the NLRB charge against Bosch.
The complaint says it is estimated more than 900 retirees are affected by Bosch’s making them start paying for health insurance. They were to start paying the monthly premiums Nov. 1, but were given until Dec. 31 to make their first payment. Once they paid, their coverage would be reinstated back to Nov. 1.
With that in mind, Fayette said Friday, he intends to file a request for a preliminary injunction with U.S. District Judge Janet Neff within the next 10 days.
The injunction will seek to stop Bosch from imposing the health insurance payment while the case is proceeding, plus require the company to reimburse retirees who already paid the new monthly premiums. Fayette said he “wouldn’t be surprised” if Neff issues a decision on the injunction before year’s end because of the Dec. 31 deadline.
The lawyer said it could take one to two years for a ruling in the case.
The complaint asks the federal court for relief, including ruling that the Bosch retirees “are entitled to said vested retiree medical insurance benefits promised under the employee benefit plans” that had been negotiated between the company and Local 383.
It also asks for a judgment against Bosch “in an amount equal to all costs and expenses sustained by all plaintiffs as a result of defendant’s reduction of the insurance benefits promised,” plus damages “for mental distress and anguish” because of ending of the free health insurance, plus attorney’s fees and costs.
Meanwhile, affected retirees have had to decide whether to start paying the monthly premiums.
For instance, Williette “Willie” Jones, a Bosch retiree, and his wife, Emma Gene, have decided to start paying. The couple, 68 and 49, respectively, have a 10-year-old daughter, so for them, that means paying $1,194 a month.
Emma Gene Jones said she needs operations for two different problems, plus weekly treatments and medicines for her health problems. Switching to a lower-cost insurance provider isn’t an option, she said, because that would require waiting a year for the surgeries because it wouldn’t pay immediately because of her preexisting condition.
But to pay the $1,194 monthly, she said, “We’re going to have to make a lot of sacrifices,” likely including getting rid of one their two vehicles and making minimal credit card payments.
Contact Michael Eliasohn at meliasohn@TheH-P.com.