FRANKFURT (Reuters) -- Daimler will pay $480 million to settle a dispute with the United Auto Workers union over medical benefits for retired employees of its North American trucks business, U.S. court records show.
The company has agreed to contribute to a trust to fund a post-retirement health care plan to support active and recently retired UAW-represented employees, according to documents filed on Monday in a federal court in Tennessee.
The agreement came after a group of retirees and the union accused the truck manufacturer of illegally cutting their benefits, the court filings show.
A Daimler spokesman referred to the company's quarterly earnings report which said Daimler Trucks North America and the UAW had entered into an agreement over a health care plan as part of a collective bargaining agreement in May, and that the resulting cash outflow was expected in the fourth quarter.
The earnings report said the settlement had no material impact on the group's consolidated statement of income or on the earnings before interest and taxes of its trucks business.