Fruehauf Trailer agrees to renew benefits for 400

January 27, 1995|By a Sun Staff Writer

Fruehauf Trailer Corp., an Indianapolis, Ind.-based maker of truck trailers, has agreed to reinstate medical coverage to about 400 blue-collar retirees of the defunct Maryland Shipbuilding and Drydock Co.

Wednesday night's action came after Senior U.S. District Judge Herbert N. Maletz last Friday issued a temporary restraining order restoring medical benefits to 300 other retirees of Maryland Shipbuilding. A hearing for a similar order for the blue-collar workers was scheduled for yesterday in Detroit before the agreement with the company was reached, according to John T. Ward, the retirees' attorney.

Fruehauf Trailer canceled the benefits to the retirees on Jan. 9, despite a 7-year-old court order requiring Fruehauf Corp., the former owner of the shipyard, to continue the coverage. The shipyard was closed in 1984.

Fruehauf Trailer says Maryland Shipbuilding, now a shell company, has no assets and says it will continue its battle to end the payments.

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