Meridian Automotive steelworkers' union objects to retiree benefits compliance motion

By Caroline Salls

Pittsburgh, May 3 - Meridian Automotive Systems, Inc.'s steelworkers objected to the company's motion to bring retiree benefit expenses into compliance with its plan of reorganization, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The motion is in connection with a grievance filed by the United Steelworkers as part of the retiree benefits for employees at Meridian's Jackson, Ohio, facility, who were locked out after the current bargaining agreement expired on April 21.

According to the motion, despite having agreed to submit to arbitration for all disputes concerning the meaning and application of its collective bargaining agreement, Meridian now wants to delegate the interpretation of the agreement to the court.

The steelworkers' union said the strong federal labor policy supporting the arbitration of labor disputes dictates that the motion that would have the court interpret the 2003 collective bargaining agreement must be dismissed.

A hearing is scheduled for May 9.

Meridian, a Dearborn, Mich., supplier of lighting, exterior composites, console modules, instrument panels and other interior systems to automobile and truck manufacturers, filed for bankruptcy on April 26, 2005. Its Chapter 11 case number is 05-11168.

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