Judge Won’t Intervene in Union Contract Disputes

WARREN – New owners of Steward Hospitals will not be forced by the U.S. Bankruptcy judge to follow collective bargaining agreements.

Judge Christopher Lopez declined to address an issue raised by the Massachusetts Nurses Association during a hearing in his Texas courtroom Wednesday. Lopez claims he does not have jurisdiction over the matter.

Attorney Sam J. Alberts, representing the Massachusetts nurses, was asking for Lopez to enforce the sale order, which Alberts states should prevent LG Newcorp and Lawrence General Hospital, the new ownership of Holy Family Methuen and Haverhill Hospitals, from modifying the collective bargaining agreement immediately after the purchase was completed.

Almost immediately following the September sale of those hospitals, Alberts contends the new ownership unilaterally modified the CBA as it pertained to staffing guidelines, pensions and healthcare benefits. While the staffing guidelines and pension changes have been resolved, Alberts told Lopez the change of health benefit coverage was not equal to what employees had before the sale of the hospital.

Albert contended the change is causing immediate harm to employees and pointed to one example where an employee undergoing auto immune deficiency treatments, which was completely covered by her healthcare under Steward. Now she must pay $1,000 per month and must cover a $3,000 deductible. The employee has stopped getting her treatments.

Alberts stated the change is allowing Lawrence General Hospital to just “game the system” without going through negotiations. Those typically occur before a sale is finalized.

“What remedy does the union have,” Alberts questioned, adding it may take many months to go through mediation or the court system. 

“We want these sales to happen, but there’s got to be good faith behavior by the purchaser,” Alberts said, calling it “something inherently offensive and wrong” when the purchaser does not follow mandated negotiation processes. He argued the buyer was instead waiting until a day after the sale was completed to “do what we want.”

Lopez pointed out what Alberts was requesting was for him to “litigate post-sale matters.” The judge suggested that may be because Lopez likely would rule more quickly — not because his court has jurisdiction.

“You made a finding that this was a good faith buyer, well unfortunately I think the facts are undercutting that,” Alberts said, requesting that Lopez rule the CBA cannot be changed until mediation can take place.

After more than 30 minutes of discussion, Lopez declined to take up the matter, which could open the door for other buyers of Steward Hospitals to change employee contracts.

And earlier this week there were reports of layoffs of Trumbull Regional Medical Center and Hillside Rehabilitation Hospital employees by new owner Insight Health System. Lopez approved the sale agreement regarding those two hospitals — in Warren and Howland — to Insight on Oct. 17.

Copyright 2024 The Business Journal, Youngstown, Ohio.