Federal courts have ruled that two companies cannot require retirees and their dependents covered by collective bargaining agreements to pay part of their health care costs. One company is trying to make its retirees pay monthly premiums and deductibles, while the second company is trying to impose copayments and deductibles on its retirees. In the case of the first company, a federal judge reinstated the benefits to retirees since the benefits were intended to outlast the life of the labor contract. In the case of the second company, a U. S. district court ordered the company to reinstate the benefits of the retirees pending the outcome of a jury trial.
Question
1. Should a company be allowed to make changes to the health benefits of retired employees who are covered by a collective bargaining agreement? Why or why not?