[Congressional Record Volume 141, Number 48 (Wednesday, March 15, 1995)]
[Senate]
[Page S3941]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page S3941]]
           LOSS OF HEALTH CARE COVERAGE FOR MORRELL RETIREES

  Mr. PRESSLER. Mr. President, I join my colleague, Senator Daschle, in 
efforts to find a solution for the Morrell retirees' who have lost 
their health benefits.
  Nearly 1,200 Morrell retirees living in South Dakota have had their 
health insurance benefits terminated. Many retirees cannot purchase a 
private health insurance plan. Under the terms of their retirement 
contract with John Morrell & Co., health insurance benefits were 
provided to all retirees. But like so many retirees, they have found 
the ground rules changed. John Morrell & Co. has terminated their 
health benefits. This decision has caused great hardship for many South 
Dakota citizens. Benefits, which they were promised and which they 
earned, have been terminated.
  I have taken steps to correct this problem. I have written to Mr. 
Carl Lindner, president of the Morrell parent company, Chiquita Brands. 
I asked that they reverse their earlier decision to terminate benefits. 
In addition I have drafted legislation, which I am garnering support 
for, which would reduce the health insurance deduction for corporations 
that terminate health insurance benefits of their retirees. 
Specifically, my proposal would limit a company to deduct just 25 
percent of their health insurance costs--if they terminated the health 
benefits of their retirees.
  The union has appealed this decision and the matter next goes before 
the Supreme Court. I am working on an amicus brief and hope to file 
this on behalf of the retirees.
  I am prepared to assist in legislation, or take any needed steps, to 
find a solution. This will be very difficult. However, I am hopeful 
this can be resolved.
  I did want to rise on the Senate floor to say that I am very 
concerned about what has happened to those retirees who have lost their 
health insurance in a contract dispute which sprung out of a long and 
difficult labor dispute that has been going on near the meat packing 
plant of John Morrell & Co. in Sioux Falls, SD.
  So, Mr. President, I wish to announce that I am also prepared to join 
in a legislative effort to protect not only these retired workers, but 
other retired workers who believed that they had health care coverage 
into their retirement. We must make it clearer to people what these 
contracts contain. I think both unions and management have an 
obligation to be clearer and more careful about the rights of these 
elderly retirees in the medical area.
  Mr. SIMPSON. Mr. President, I thank the Chair.
  (The remarks of Mr. Simpson pertaining to the introduction of S. 559 
are located in today's Record under ``Statements on Introduced Bills 
and Joint Resolutions.'')
  The PRESIDING OFFICER. The Chair recognizes the senior Senator from 
Maine.
  Mr. COHEN. Mr. President, I ask unanimous consent I be allowed to 
proceed in morning business for a period of time not to exceed 15 
minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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