Penzien v. Dielectric Products Engineering Co.

Plaintiffs sued for severance pay claimed by them as tbird-party beneficiaries of a collective bargaining agreement, basing their claim on this contract language:

“Termination of Operations

“110. It is hereby agreed that in the event the company takes any steps to close down operations in the Mount Clemens area plant or plants, this matter including the question of severance pay, shall become subject to negotiation upon 24 hours notice by either party. It is further understood and agreed that paragraph 103 shall not apply in the event of failure to reach agreement in such negotiations.”

Paragraph…