Caterpillar wants UAW to pay for lawsuits

PEORIA, Ill., July 26 (UPI) -- Caterpillar has filed suit in Nashville against the United Auto Workers union in response to lawsuits seeking no-cost health insurance filed by retirees.

The retirees and surviving spouses filed two class action suits in federal court claiming terms of previous contracts make retirees and spouses eligible for free health care coverage for life. Trial is set for 2008, reported the Peoria (Ill.) Journal Star.

In its third-party federal lawsuits filed against the UAW and seven locals Caterpillar, headquartered in Peoria, Wednesday claimed the UAW is not living up to contracts negotiated in 1998 and 2004 in which employees and retirees contribute to health care costs.

The company said in a statement that since the union is supporting and encouraging the retiree's lawsuits, "If Caterpillar were found liable ... the company believes the UAW would be responsible for any liability over and above Caterpillar's financial obligation for retiree healthcare as set forth in these contracts.