LOCAL 495, UAW v. Diecast Corp.

Defendant Diecast Corporation initiated a profit-sharing plan for its employees on October 1, 1961. Under the terms of the plan, Diecast Corporation was required to contribute a sum equal to 20% of the net profits of the company for each fiscal year in excess of 6% of the book value of the company at the beginning of the year. However, the contribution was not to exceed 15% of the compensation otherwise paid or accrued during that fiscal year to all participants in the program.

In 1965 Diecast Corporation and the plaintiff entered into a collective bargaining" agreement. The agreement provided…