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Retirees sue NewPage Corp. over health benefits

Lawsuit claims the paper producer is unfairly reducing its share of health-care payments.

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By Ben Sutherly, Staff Writer 9:10 PM Monday, December 28, 2009

DAYTON — Retirees of NewPage Corp. have filed a class-action lawsuit in federal court against the Miamisburg-based coated paper producer over its plans to phase out subsidies for their health-care premiums.

The lawsuit, filed Dec. 24, alleges that NewPage’s decision breaches collective bargaining agreements and an Employee Retirement Income Security Act plan for workers at its Wisconsin paper mills. It alleges the labor agreements give NewPage no right to unilaterally shift health-care costs to employees once they have retired.

The collective bargaining agreements were reached between NewPage — or its predecessors — and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (AFL-CIO/CLC) or its predecessors, according to the lawsuit.

“All we’re looking for is for them to keep their word,” said Stephen Pincus, an attorney representing the plaintiffs.

A NewPage spokeswoman declined comment on the lawsuit and would not say how many retirees would be affected by the company’s decision. However, no retirees in Ohio are affected, she said.

NewPage confirmed that it notified retirees in November that those employees over 65 years old who retired after 1985 would gradually see their premium subsidies reduced.

In 2010, retirees will receive 66 percent of the premium subsidy they received this year. That will drop to 33 percent in 2011 and will disappear in 2012.

“NewPage is not terminating retiree health-care benefits,” spokeswoman Shannon Semmerling said in a prepared statement. “We will continue to provide access to retiree health-care plans and continue to seek low-cost options in order to keep plans affordable.”

The action is necessary to keep the company financially viable and benefits available and affordable amid “unprecedented market conditions,” Semmerling said.

The lawsuit seeks certification of the action as a class action, an injunction to keep NewPage from terminating or modifying retiree health benefits, and reimbursement of attorney fees and other costs.

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