United Steelworkers Sues Alcoa Over Terminated Life Insurance Benefits For Union Retirees
The United Steelworkers Union has filed suit against Pittsburgh-based Alcoa for terminating life insurance coverage for union-represented retirees. The lawsuit was filed in the Southern District of Indiana, where many of the approximately 8,900 people impacted live.
Alcoa has offered payments to affected retirees, totaling about $15 million. Tom Conway, president of the USW, said those payments are a fraction of the value of the life insurance coverage.
"The company and its leadership should be ashamed of themselves in treating people this way," Conway said. "We don't think they have the legal basis to do this, nor the contractual basis with us."
In a statement, Alcoa spokesperson Jim Beck said this move is part of a larger effort for the company.
"While any action that affects our retirees is difficult, this decision is in alignment with our strategy to improve Alcoa for the long term, including through balance sheet improvements," Beck said. "We took similar action with other retirees in 2018."