Akron, OH: (Jul-06-07) United Steelworkers (USW) filed a class action lawsuit against Goodyear Tire & Rubber Co. in federal court over wanting to be covered under Voluntary Employees' Beneficiary Association (VEBA). The Steelworkers and Goodyear Tire & Rubber Co. agreed to create a trust as part of a settlement during the union's 85-day strike that ended in December 2006.
Goodyear has agreed to pay as much as $1 billion into the fund, which then will have sole responsibility for union retirees' health care costs. The independent health care trust stands to benefit the union's 30,000 retirees. The union lawsuit was filed Tuesday in US District Court for the Northern District of Ohio. US District Judge John R. Adams was assigned the case. As part of the settlement of the USW lawsuit, the court will certify the class of retirees covered under the proposed VEBA. Goodyear expects the VEBA will save it $110 million a year over 2006 levels. [
