July 14, 2009
Fourth circuit appeals decision rejects company’s arguments
During major layoffs at Continental Tire in 2006, the union filed two grievances challenging both the company’s failure to provide the extended health insurance benefits and the accelerated distribution of pensions that it had promised. The company refused to arbitrate the grievances, and the union filed suit to force arbitration.
A federal district court in Charlotte, after a hearing, rejected the company’s many arguments that it was not required to arbitrate and ordered it to do so. Instead, the Company appealed to the U.S. Court of Appeals for the Fourth Circuit.
After oral arguments on May 13, 2009, the Fourth Circuit, on June 9, also rejected the company’s arguments and enforced the decision of the district court ordering Continental Tire to arbitration.