Restructuring, Workers' Pension Rights, and the Law

Abstract

This paper extends analysis of the intersection between economic and geographical restructuring, unions, and corporate pension liabilities. The focus here is on Gavalik v Continental Can Co., a suit brought in federal district court alleging that the company had violated Section 510 of the Employee Retirement Income Security Act by laying off workers and relocating work at the company's Pittsburgh plant. After considering the role of unions in the growth and expansion of private pensions in the United States, and the current case in the context of litigation over the power of Section 510, the legal arguments made by the plaintiffs and defendants in federal courts are examined. Emphasized are issues relating to the motivations of the corporation, as well as the courts' determination of what are legal and illegal actions.