Rethink Retiree Health Benefits, Supreme Court Tells 6th Circuit

Disputes over health benefits for union retirees must be decided based on ordinary principles of contract law, the U.S. Supreme Court announced for the second time in three years.

The justices Feb. 20 once again rejected the U.S. Court of Appeals for the Sixth Circuit’s way of handling these disputes, which they said was rooted in inferences and assumptions and not the text of the applicable collective bargaining agreements. The result is a victory for CNH Industrial, which was sued for its attempt to modify the health-care benefits it provides for union retirees.

This marks the second time in three ...