UAW Retirees Win Injunction Against Honeywell International; U.S. Court Orders Firm to Reinstate Retiree Health Benefits by Oct. 1

DETROIT, Sept. 22 -- In a major victory for nearly 800 UAW Bendix retirees, the U.S. District Court for the Western District of New York has issued an injunction ordering Honeywell International, the corporate successor to Bendix, to reinstate the retirees' full health insurance benefits by Oct. 1, 2003. The retirees worked in automotive parts plants in Elmira, N.Y., and Madison Heights and Detroit, Mich., formerly owned by Bendix Corp.

The injunction, issued Sept. 19 by Judge Michael A. Telasca, follows an earlier court victory for the group of UAW Bendix retirees. On Sept. 7, Judge Telasca issued a summary judgment declaring Honeywell International legally responsible for the payment of retirement benefits guaranteed by Bendix in a 1976 "Guaranty agreement."

In his Sept. 19 ruling, Judge Telasca stated: "Since September 1, 2002, the plaintiffs have been denied the health insurance benefits to which they are entitled. To protect plaintiffs' health and mental well-being, Honeywell must restore plaintiffs' benefits immediately."

UAW President Ron Gettelfinger hailed the court's ruling as "an important victory not only for these UAW-represented Bendix retirees, but for the principle that a contractual guarantee of lifetime health care benefits is just that -- a guarantee."

"While we are pleased by the court's ruling in this case, the fact remains that most retired workers in America don't have contractual guarantees or a union willing to fight for them," Gettelfinger said. "That's why the UAW continues to fight for a comprehensive national health care system."

Noting that the ruling called medical insurance "a necessity," Geri Ochocinska, director of UAW Region 9, which includes western New York, said, "The judge got this one exactly right: Health care isn't just another commodity, it's a basic life necessity. Bendix guaranteed our members' health care coverage for life; that guarantee means just what it says, and Honeywell, as the corporate successor to Bendix, is bound to honor it."

The UAW's litigation against Honeywell International began in August 2002, after Motor Components LLC, the current owner of the Elmira auto parts plant formerly owned by Bendix, unilaterally cut retirees' health and life insurance coverage.