Expired collective agreement-retired workers' contractual benefits — employer ending benefits — vested rights —Collective Agreement • November 7th, 2020
Contract Type FiledNovember 7th, 2020A plant collective agreement provided certain group insurance benefits for the em- ployees. Included in these benefits were a paid-up life and accidental death insur- ance policy and extended health and dental care insurance. Four months before the expiry of the agreement, the company permanently closed its plant. Prior to the closing, it had negotiated with the union a shutdown agreement under which the group insurance benefits for active employees would be discontinued six months after the plant closure; however, this agreement did not mention the retired employ- ees' benefits. The collective agreement was formally terminated and two days later the company notified all employees that their group insurance benefits were to cease at the end of the period stipulated in the shutdown agreement. On the basis of the expired collective agreement, the union lodged a grievance demanding the rein- statement of the benefits on behalf of the retired employees. The company took the position that t