A group of non-unionized retirees—including some former executives—have filed a lawsuit against Labatt, claiming the company broke a promise to provide almost unlimited health benefits.
The plaintiffs accuse the beer maker of conspiracy and breach of contract by capping retiree benefits, according to a statement of claim filed in Ontario Superior Court.
“This unilateral change constituted a breach of each(employee’s)contract and violates his or her vested retirement rights and health-protection benefits and those of their eligible dependants,” states the claim.
Last December, the company sent a letter to retirees, which said there would be changes to their benefits effective March 1, 2007. One of the key changes was a cap on cumulative health and drug benefits at $50,000.
The letter said it had to impose limits because premiums for retirees jumped 44% between 2002 and 2006.
The suit seeks $50,000 in punitive damages for each member of the suit.
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