Cup v. Ampco Pittsburgh Corp, No. 17-2349 (3d Cir. 2018)Annotate this Case
Employees at Akers's manufacturing facility were union members, represented by USW under collective bargaining agreements (CBAs). In 2016, Akers was acquired by Ampco. Former Akers employees who had retired but were under age 65 (not eligible for Medicare) then paid $195 per month for their healthcare. Ampco planned to eliminate that benefit for those who had retired before March 2015. The new plan would require retirees to purchase health insurance on the private market and then be reimbursed up to $500 per month for individuals ($700 for families), for five years. Retirees cited a February 2015 memorandum of agreement (MOA), providing that “[c]urrent retirees will remain on their existing Plan ($195.00 monthly premium).” USW filed a grievance. Ampco rejected the grievance, claiming that the Union no longer represented the retirees. USW and Cup, who retired from the plant in 2014, on behalf of a class, filed a non-substantive claim compelling arbitration under the Labor Management Relations Act, 29 U.S.C. 185; a claim to enforce the CBA; and, alternatively, a claim under the Employee Retirement Income Security Act, 29 U.S.C. 1132(a). Having ruled in the Union’s favor on the arbitration count, the court dismissed the substantive counts. The Third Circuit stayed enforcement of the arbitration order, then concluded that the dispute is not subject to arbitration under the CBA because retiree health benefits are not covered by the CBA. Retiree health benefits are discussed in the MOA, which was never incorporated into the CBA; whether the omission was was intentional or inadvertent, the contracts must be enforced as written.