Court Decides CTNA Must Pay Health Benefits
Following a US court ruling Continental Tire North America has been given the responsibility of compensating the healthcare expenses of a number of retired employees from plants in Ohio, Kentucky, North Carolina and California. The US district court in Toledo, Ohio decided that the company improperly reduced the health benefits of 3,000 former CTNA employees and their spouses.
Lawyers for the plaintiffs claimed that the CTNA decision to reduce the former employees’ health benefits resulted in couples not old enough to qualify for subsidised ‘Medicare’ health care (the minimum age for eligibility is 65) paying as much as US$1,000 a month for insurance. Many former employees were reportedly unable to afford these costs and thus were compelled to drop their healthcare cover.