Case Study: M & G Polyester Plant

Point Pleasant Polyester Plant was purchased by M&G Polymers USA, LLC (M&G) in 2000 and entered in a collective bargaining agreement and Pension, Insurance, and Service Award Agreement (P & I agreement) with the union representing the employees. According to the P & I agreement, employees who retire on and after January 1, 1996 is entitled to “receive a full Company contribution towards the cost of health care benefits” ("M&G Polymers USA, LLC v. Tackett", 2015). Retiree health care benefits include hospital benefits, hospital-medical benefits, surgical benefits, and prescription drug benefits for eligible employees and their significant others. But the retirees from the Point Pleasant Plant sued when they found that M&G is requiring retirees