Gerdau Hit With Lawsuit Over Retiree Health-Care Benefit Cuts

December 27, 2017, 8:27 PM UTC

Gerdau Ameristeel US Inc. is accused of violating federal labor and benefits laws by allegedly breaking its promise to provide company-paid health-care coverage to retirees from a steel mill it operates in St. Paul, Minn.

Gerdau violated the terms of a 2015 collective bargaining agreement negotiated with the United Steelworkers by allegedly asserting the right to make unilateral changes to the health benefits set forth in the agreement, according to a lawsuit filed Dec. 27 in federal court in Minnesota.

The dispute arises from Gerdau’s 2016 announcement that it intended to eliminate health-care benefits for eligible retirees and spouses over ...

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