Union sues employer for missed benefits payments

by | Apr 27, 2017 | Contract Disputes |

Ohio businesses frequently rely on contracts and contractual relationships in order to properly conduct their business. The nature of these contracts may range dramatically and some even apply to the benefits or treatment of employees. When one party in a contract fails to perform a stated duty, the other party may choose to initiate legal action. That is precisely what has happened in a case involving a labor union and a utility company recently.

As is common for many employers, the Penn-Ohio Electric Company was required to make payments into funds that supported the benefits of union employees. These employees were part of the International Brotherhood of Electrical Workers Local No. 712 union. However, reports indicate that some payments were not made. It is not known for how long payments failed to be made or if all payments were missed or just some payments.

Regardless of the length of time or amount or percentage of missed payments, the labor union has filed a lawsuit against the electric company for breach of contract. In addition to injunctive relief, a request has been made for damages and payments to reimbuse the unpaid contributions as well as interest that employees would have accrued or earned. The action was filed in a U.S. District Court.

When one entity in a contract in Ohio believes it has been wronged by the actions or inactions of the other party, talking with an attorney might offer insights into how to seek compensation.

Source: Penn Record, “IBEW says Penn-Ohio Electric failed to pay into union funds,” Louie Torres, April 14, 2017

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