ST. LOUIS (CN) – DaimlerChrysler Corp. did not breach a contract when it failed to allow recent retirees to participate in an early retirement package, the 8th circuit ruled.
A group of 119 former employees sued the car manufacturer and their unions for failing to include the group, all of whom retired from St. Louis-area Chrysler plants between Sept. 30, 2003, and Nov. 30, 2004.
The retirees argued that since recent retirees were included in retirement-incentive programs in the past, it implied a contract that was breached by DaimlerChrysler and the unions.
Judge Melloy disagreed, stating that the retirement programs are governed by the Employee Retirement Income Security Act, which requires employees to prove the breach of a written contract with Chrysler.
Similarly, because no contract was breached with Chrysler, the retirees are unable to sustain a case against the unions, Melloy ruled.