United Steelworkers awarded over $5 million in back benefits after an arbitrator decided that Philadelphia Energy Solutions (“PES”) suspended medical and pension benefits in violation of the parties’ union contract

In an unprecedented win for local unions, Philadelphia arbitrator Thomas McConnell ordered Philadelphia Energy Solutions (“PES”), a subsidiary of the Carlisle Group, to repay more than $5 million in benefits to members of the United Steelworkers employed at the company’s South Philadelphia oil refinery.

In January 2017, PES unilaterally suspended pension benefits of the more than 650 union members and reduced its contributions to the employees’ health insurance premiums. The company’s actions left the workers with no future retirement benefits and heftier insurance costs.

On June 22, after a lengthy arbitration, Arbitrator McConnell issued a 41-page decision ordering repayment of all monies.  He ordered PES to reimburse the union members for all the losses they sustained from the company’s unilateral changes to the medical and pension plans.

Galfand Berger attorneys Michael W. McGurrin and Farhan S. Ali won this important victory for the USW workers at the PES refinery.