Employer Unlawfully Repudiated CBA That Covered One Full-Time Employee, Court Says

The U.S. District Court for the Western District of Washington ruled Dec. 6 that an employer unlawfully repudiated a collective bargaining agreement that required the employer to make contributions to several Employee Retirement Income Security Act-governed employee benefit plans (Northwest Sheet Metal Workers Organizational Trust v. Climate Systems LLC, W.D. Wash., 2:11-cv-01574-RSL, 12/6/12).

The employer entered into a CBA with the Local 66 Sheet Metal Workers Union and made contributions under the CBA to several employee benefit plans. In October 2010, the employer ceased making contributions to the plans and notified the union that it was repudiating the ...