Reference no: EM133622408
CASE STUDY - Denial of Health Care Benefits to Striking Employees
The employer operates two production facilities, one inMichigan and the other in Ohio. Employees at both plantsare covered under separate, but similar labor agreements.On August 10, a lawful economic strike was initiated bylocal union members at the company's Ohio plant. TheOhio local union members established picket lines at boththe Ohio and Michigan facilities of the employer. Picketingoccurred at the Michigan plant on August 10-11; August23-26; August 31-September 3; and September 7-9.On August 5, the company sent a letter to allemployees advising them of the status of negotiationsat the Ohio plant and warning employees that"anemployee's refusal to perform work under these circum-stances could result in the immediate loss of all unac-crued benefits, including health care."The Michiganplant employees who honored the picket line establishedby the Ohio plant employees were subsequently deniedhealth care benefits by the company on the days theyparticipated in the strike by refusing to cross the picketline established at the Michigan plant.Both the employer and union agree that the Michi-gan plant union members who honored the picket lineestablished at their plant did not cease to be employeesof the company as a result of their refusal to cross thepicket line. The language in the parties'contractual no-strike agreement covering the Michigan plant does notprohibit employees from engaging in lawful sympathy strike activity, and thus covered sympathy strikers can-not be disciplined or discharged for their refusal tocross a lawfully established picket line. Both theunion and the employer agree that the Michiganplant labor agreement is silent on the specific questionof whether health care benefits must be maintained orcan be denied to employees who strike.The only contract language with any possible rele-vance concerns the clause dealing with termination ofemployment, which states:"In the event of terminationof employment other than normal layoff or retirementwith pension, an employee's hospitalization, surgical andmedical coverage and life insurance under the grouparrangement shall be cancelled in thirty (30) days."The employer argues that this language is not applicableto the strikers in this case because none of the strikerswere terminated. The union argues that if the partiesclearly intended to permit a terminated individual toretain medical insurance benefits for at least 30 daysafter termination, then surely employees who were notterminated would have at least an equal right to con-tinue health care coverage, even though they lawfullyrefused to work on certain dates in support of a lawfuleconomic strike by other company employees.The union filed a contractual grievance stating thatthe employer's withdrawal of medical benefits fromMichigan plant sympathy strikers violated their con-tractual right to receive such benefits as providedunder the health care benefits clause in the currentlabor agreement. The union asked the arbitrator torequire the employer to reimburse all affected strikingworkers for all covered health care expenditures paidby the striking workers on dates when the companyhad suspended their health insurance coverage due totheir refusal to cross a lawfully established union picketline at their place of employment.
Questions
1. Should the arbitrator uphold the union's grievance and find that the company's withdrawal of medical benefits from striking workers violated their con-tractual right to receive such benefits? If so, what should the appropriate remedy be? Explain your reasoning.
2. When the current contract governing the Michiganplant expires, would you advise the employer to negotiate specific contract language as part of a no-strike agreement clearly waiving bargaining unit members'right to engage in a sympathy strike dur-ing the term of the labor agreement? Explain your reasoning.
3. If the employer did propose a waiver of sympathy strike rights in the future, would this bargaining issue likely represent a high-,medium-, orlow-priority item for the union and its membership? Explain your reasoning.