Armstrong Flooring Inc. asked a Delaware bankruptcy court to allow it to reject current union contracts and stop paying retiree health and life insurance benefits, Lancaster Online reported. Under the proposals, contracts with the United Steelworkers and International Association of Machinists and Aerospace Workers would cease when a sale is consummated, when Armstrong Flooring stops operating a plant, or its financing ends, whichever comes first. The retiree benefits would end at the conclusion of the sale process if no buyer wanted to assume them. The unions and a nonunion retiree committee, once it is formed, would maintain rights to argue the matter in court. Unions have until June 15 to file objections to ending the contract. Armstrong Flooring requested a June 22 hearing on the union contracts and retiree health and life insurance benefits. That falls on the same day as a hearing about the sale of its North American assets. Bids are due June 14 and an auction, if needed, is set for June 16. Bids for the company’s assets in Australia and China are due June 23. The motions are not a surprise because the company indicated it would seek to end retiree benefits when it filed for chapter 11 protection in May.
