Federal Agency (EEOC) Charges Car Manufacturer, GM, and Labor Union, UAW Denied Sickness and Accident Benefits to Older Workers
BEDFORD, IN (STL.News) General Motors (GM) and the International Union of United Auto Workers (UAW) violated federal law when they negotiated a collective bargaining agreement which limited short-term disability payments to older workers who receive Social Security Retirement benefits, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed on January 17, 2025.
According to the lawsuit, since at least 2019, the agreement between the parties provided that GM will pay weekly benefits to employees who miss work due to sickness or injury. But GM paid less to employees who were entitled, by their age, to full retirement benefits through the Social Security program, leaving workers aged 66 and older with fewer benefits than younger coworkers.
Such alleged conduct violated the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act (OWBPA), which prohibits employers from discriminating against individuals aged 40 and older in compensation, terms, conditions, and privileges of employment, including employee benefits, because of their age. The EEOC filed suit (EEOC v. General Motors, LLC, and International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, Case No. 4:25-cv-00010) in U.S. District Court for the Southern District of Indiana, New Albany Division, after first attempting to reach a pre-litigation settlement through its administrative conciliation process.
“GM and UAW penalize older workers whose age and work history allow them to collect Social Security retirement insurance,” said EEOC Regional Attorney Kenneth L. Bird. “All workers should be entitled to the same benefits under a collective bargaining agreement, regardless of age.”
Michelle Eisele, director of the EEOC’s Indianapolis District Office, said, “The EEOC is committed to ensuring that older workers receive the same benefits as their younger colleagues. Employers should be cognizant of their obligations under the OWBPA, which strengthened prohibitions against discrimination in benefits.”
