Johnson Controls Must Face Union in 401(k) Match Arbitration

A company that sells and maintains security alarms and provides related services must go to arbitration under the terms of its collective bargaining agreement with a union alleging the company made insufficient contributions to its workers’ 401(k) plans, the First Circuit said.

The International Brotherhood of Electrical Workers, Local 103 represents employees at Johnson Controls Security Solutions LLC‘s Norwood, Mass., facility. The union alleges Johnson Controls violated its CBA when in early 2020 it unilaterally announced a one-year reduction in its 401(k) matching contribution.

The union sought arbitration, while the company brought suit to block it.

A lower court ...