Federal court sides with Maytag on retiree medical cuts - KWWL - Eastern Iowa Breaking News, Weather, Closings

Federal court sides with Maytag on retiree medical cuts

Posted:
NEWTON (KWWL) -

A federal appeals court has upheld a decision by Whirlpool Corporation to slash the medical benefits for more than 3,000 Maytag Corporation retirees.

Whirlpool purchased Newton, Iowa-based Maytag before closing its plant in 2007 and laying off hundreds of workers.

In 2008, Whirlpool announced Maytag retirees would no longer receive the free health care they believed they were owed under previous union contracts.

Whirlpool's plan started charging retirees in 2009 monthly premiums with deductibles, and required them to pay a portion of their expenses.

The United Auto Workers challenged the cuts, saying they believed the benefits were vested and could not be eliminated.

The court sided with Whirlpool.

Powered by Frankly