An appeals court has reversed an earlier ruling allowing General Motors to decrease the work injury benefits it was giving to a retiree who was hurt while on the job. The Michigan Court of Appeals said that UAW, the union for America’s autoworkers, lacked the authority to vote to modify collective bargaining for workers who had already retired. The court noted that there was no evidence showing that the plaintiff gave the union the authority to represent him to change the agreement that he retired under.
Some 1800 GM retirees saw a reduction in their benefits in 2010 because of a law, passed in the 90’s, which let companies reduce workers’ compensation checks by how much they were getting in their disability pension. For a long time GM and UAW agreed they would not reduce the checks until workers had turned at least 65. However, in the wake of GM’s financial problems, a deal was struck in 2009 between the union and the automaker to make cuts to workers’ compensation benefits.