Opinion ID: 430565
Heading Depth: 4
Heading Rank: 3

Heading: Provision of Benefits During A Strike

Text: 23 During a four-month strike in 1977, Bunker Hill provided insurance benefits to pensioners. Since labor-management agreements are not in effect during strikes, appellants cite this as evidence that retirement insurance benefits were not governed by the labor-management agreement. 24 The payment of benefits during a strike distinguishes this case from all of the cases relied upon by appellee. See Turner, 604 F.2d at 1222-23; International Union, United Automobile, Aerospace and Agricultural Implement Workers of America v. Roblin Industries, Inc., 561 F.Supp. 288, 290-97 (W.D.Mich.1983); Metal Polishers, Local No. 11 v. Kurz-Kasch, Inc., 538 F.Supp. 368, 369 (S.D.Ohio 1982) (strike immediately precedes plant closing; not mentioned in analysis of whether rights vested); United Rubber, Cork, Linoleum and Plastic Workers of America, AFL-CIO v. Lee National Corporation, 323 F.Supp. 1181, 1184, 1187-88 (S.D.N.Y.1971) (strike; company terminates welfare plan pursuant to its terms; no legal obligation to continue retirement insurance thereafter). 25 Conversely, the only case that analyzes in depth the effect of payment of insurance benefits during a strike concludes that payment suggests that the benefits are vested. United Auto Workers v. Cadillac Malleable Iron Co., --- F.Supp. ----, 3 Empl.Ben.Cas. 1369 (W.D.Mich.1982). The court discounted company testimony that payment was only an accommodation to workers because such testimony was subjective and self-serving. Id. at ----, 3 Empl.Ben.Cas. at 1375. It concluded that the objective manifestation of a party's intent should govern this contractual dispute. Thus when insurance benefits are provided during a strike, those benefits are probably not tied to the term of a labor-management agreement. 26 Although not bound by the precedent of the Cadillac court, we are convinced by its logic. If insurance benefits are provided while no labor-management agreement is in effect, and no other agreement between the employer and employees has been reached, the contract must be deemed ambiguous. Here, we know that benefits were provided during a strike. There is no evidence on the record whether Bunker Hill and its employees had reached an agreement governing the provision of these benefits. It is improper to grant summary judgment before parol evidence on this issue has been heard.