Indiana Federal Judge Rules Sysco is Not Required to Arbitrate Pension Dispute
An Indiana federal judge has ruled that Sysco Indianapolis LLC "does not have to submit to arbitration in a dispute with the union over retirees' eligibility for certain early retirement benefits," as reported by Law360. An excerpt is below:
In a decision Tuesday, U.S. District Judge James Patrick Hanlon said the case record contains "forceful evidence" that Sysco and Teamsters Local 135 did not intend to arbitrate pension-related disputes under their 2018 collective bargaining agreement. That evidence included the parties' bargaining history, which showed that Sysco refused to incorporate certain pension-related language into the 2018 CBA and the fact that the pension plan is separate from the CBA.
The plan, which existed for 60 years before Sysco's employees could enroll, is governed by "separate rules and dispute resolution procedures independent of those that govern the CBA," Judge Hanlon said. Therefore, pension-related issues are exempt from the CBA's language on arbitration, the judge found.
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