Representatives of United Food and Commercial Workers Union Local 1776KY filed a lawsuit last week in the U.S. District Court for the Western District of Pennsylvania against Mound View Health Care, alleging that the provider owes almost $1.5 million to the union workers’ fund after defaulting on monthly payments in January.
According to the complaint, Mound View withdrew from the pension fund and therefore was required under federal law to make monthly liability payments of $1,010 “indefinitely.” The union now is seeking full payment of $1.5 million, which includes $1.4 million for the balance owed, plus interest and liquidated damages, as well as attorney fees and expenses, according to the document.
“Mound View made monthly withdrawal liability payments in accordance with the payment plan, but subsequently failed to make the payments due,” the complaint states.
Wendell Young, president of Local 1776, told the McKnight’s Business Daily that counsel for the pension fund notified Mound View in May that it was behind in payments, giving the company 60 days to catch up. Mound View did not respond, he said, so the case is moving to the court.
“This is our members’ money and we’re going to pursue it to the fullest extent of the law,” Young said.