TRW, Kelsey-Hayes to Pay $30 Million Toward Retiree Health Care

TRW Automotive Inc. and subsidiary Kelsey-Hayes Co. will pay more than $30 million over a 10-year period to fund health benefits for retirees of two shuttered Michigan plants, ending federal court class actions by the United Autoworkers and United Steelworkers.

The settlement, announced Aug. 14 in court papers filed in the U.S. District Court for the Eastern District of Michigan, provides health coverage for about 240 retirees through a Voluntary Employee Benefits Association funded by the defendants. The VEBA will provide retirees with Medicare-supplementing health coverage and prescription drug coverage.

The parties say the settlement reflects the fact that the ...