Category Archives: Employment benefit issues

Hostess Diversion of Pension Money Caused Strike, Death of Company

The demise of the Hostess company, leaving Twinkies’ future in doubt, was widely blamed on the bakers’ union’s strike.  The real story is more complicated. The bakers union agreed that their 2010 wage increase of 30 cents per hour would be almost completely devoted to pension contributions.  So they took a two cent raise, and the...
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Long-Term Disability Insurer Not Permitted to Take Both Sides of the Issue

recent decision out of the Seventh Circuit Court of Appeals reinstated a disabled employee’s benefits, finding a conflict of interest by the insurer.  Under federal law, a long-term disability policy obtained through employment requires the fiduciary to allow a claimant at least one administrative appeal, before filing in federal court.  In many cases, the...
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