NLRB
charges Lawrence & Memorial Hospital with violating workers’ rights
As
I predicted, the charges filed by American Federation of Teachers (AFT)
Local 5049 against Lawrence & Memorial (L&M) Hospital of Stonington,
the new owner of Westerly Hospital, were upheld by the National Labor Relations
Board (NLRB).
The
AFT filed union-busting charges against L&M for a practice often called
“double-breasting.” This occurs when an employer sets up a non-union “alter
ego” company to subvert a union contract. The employer starts shifting jobs and
work from the unionized business to the non-union business. This practice is
illegal under the federal National Labor Relations Act.
L&M
Hospital, which is unionized, set up the Lawrence & Memorial Medical Group
next to the hospital and started shifting patient care from the hospital to the
medical group and then laid off unionized hospital workers.
Lawrence
& Memorial has set up a similar structure at Westerly Hospital when it
absorbed the Westerly Hospital physicians who were part of Westerly Hospital’s
Atlantic Medical Group into the L&M Medical Group.
Westerly Hospital’s affiliated medical group was the subject of a murky $500,000 settlement of a pending federal investigation that was completed just before L&M took over Westerly Hospital on June 1.
Westerly Sun investigative reporter Dale Faulkner reported on some of the details of the irregularities that led to the settlement, which included improper agreements between the Hospital and several affiliated medical groups that could have violated federal anti-fraud provisions of Medicare and Medicaid.
The
case was settled to clear the way for closure of L&M’s buy-out of Westerly
Hospital. However, Faulkner reported, the federal government reserves the right
to exclude Westerly Hospital, L&M or its doctors from the Medicare and
Medicaid programs, as well as pursue IRS violations or criminal prosecutions.
The hospital claimed that this was simply “boilerplate language” with no particular meaning. However, a spokesperson for the US Attorney said that none of the language in the settlement was “boilerplate” and that the investigation of potential wrong-doing was still open.
The hospital claimed that this was simply “boilerplate language” with no particular meaning. However, a spokesperson for the US Attorney said that none of the language in the settlement was “boilerplate” and that the investigation of potential wrong-doing was still open.
The
new NLRB labor charges against Lawrence & Memorial raise the likelihood of
more trouble arising from management’s practice of creating complex,
interlocked corporate entities.
At
a news conference, AFT Local 5049 President Lisa D’Abrosca said, “they’re
basically outsourcing to themselves…The Labor Board ruled that this is not
acceptable.”
The
union is currently organizing the workers at L&M Medical Group where the
150 health care workers receive far less pay and benefits than the unionized
L&M Hospital workers they replaced. For example,
nurses working for the Medical Group are paid $20 while the nurses at the
Hospital are paid $28-$45 an hour for the same work.
The
union says a good sized majority of the workers at the Medical Group have said
they want to join the union.
At
that same
news conference, AFT organizer Greg Kotecki said “This [practice] is also
expanding out to Westerly Hospital” and called it a “shell game.”
The
NLRB also upheld union charges that L&M has stonewalled union requests for
information on the nature and quantity of services being transferred from the
Hospital to the Medical Group, information the union is legally entitled to
receive.
The
case now goes before an NLRB Administrative Law Judge on October 21. The
Hospital administration denies all charges and is signaling that they intend to
drag out the process.
Lawrence
& Memorial’s PR flak Michael O’Farrell said on behalf of the hospital:
“While we are disappointed that the
local office of the NLRB has decided to issue a complaint directed to Lawrence
+ Memorial Hospital, this is not a decision based on merits. Rather, it is just
the first step in what no doubt will be a lengthy process. Our hope is that the
union will be respectful of that process, which includes a full hearing before
an administrative law judge where Lawrence + Memorial Hospital will have the
opportunity to present its case.”
Well,
Mike, respect is a two-way street. “Double-breasting”
to undermine a union contract has been an illegal practice for decades and
L&M’s blatant use of this illegal practice stands as a pretty good example
of disrespect. Mike, if you expect respect, you’ve got to be prepared to give
it.
Further, his depiction of the charges is highly inaccurate. The action by the NLRB to uphold the union's charges is similar to that of a prosecutor securing an indictment. In the next step, the NLRB judge will determine whether the charges are accurate - and when the NLRB brings charges forward like this, they usually are - and then assesses the penalty.
Many bad employers prefer to fight the outcome of an NLRB trial in the courts, often for years, rather than acknowledging their guilt, fixing the problem and mending relationships with its workers. L&M is signalling that this as their game plan, and that's not good for the hospital, the workers or the patients.
Further, his depiction of the charges is highly inaccurate. The action by the NLRB to uphold the union's charges is similar to that of a prosecutor securing an indictment. In the next step, the NLRB judge will determine whether the charges are accurate - and when the NLRB brings charges forward like this, they usually are - and then assesses the penalty.
Many bad employers prefer to fight the outcome of an NLRB trial in the courts, often for years, rather than acknowledging their guilt, fixing the problem and mending relationships with its workers. L&M is signalling that this as their game plan, and that's not good for the hospital, the workers or the patients.
During
the union news conference, the leaders stressed their commitment to patient
care and stressed that this dispute is directly tied to quality of care since
decent and honorable treatment of health care workers is one way to motivate
staff excellence.
If
you have doubts about how labor-management relations can factor in, just compare
the rankings of South County Hospital, with its long history of good labor
relations, with both Westerly Hospital and Lawrence & Memorial.
In
the most recent Consumer
Reports, hospitals around the country were ranked state by state and by
types of service. South County Hospital once again was rated the best in Rhode
Island. Westerly Hospital was far back in the pack as was L&M Hospital when
compared to other Connecticut hospitals.
 |
| The new Westerly Hospital board |
Many of the new board members were drawn from the Westerly Area Residents Committee (WARC) which was formed to try to save the hospital from closure.
Other
new board members come from L&M management and from the affiliated medical
groups.
I
can understand the interest of the former WARC members in wanting to stay
focused on keeping Westerly Hospital alive, even if that means knuckling under
to the new masters.
In the recent news coverage of the hospital, the unions representing Westerly Hospital workers have also maintained an almost invisible profile. I can also understand with L&M management’s aggressive pursuit of the bottom line, even if I don’t agree with it.
However, playing the "shell game" of setting up alter ego corporations and setting up dubious business relationships among these entities has gotten the hospital in trouble with the US Attorney, IRS, Medicare, Medicaid and now the National Labor Relations Board.
In the recent news coverage of the hospital, the unions representing Westerly Hospital workers have also maintained an almost invisible profile. I can also understand with L&M management’s aggressive pursuit of the bottom line, even if I don’t agree with it.
However, playing the "shell game" of setting up alter ego corporations and setting up dubious business relationships among these entities has gotten the hospital in trouble with the US Attorney, IRS, Medicare, Medicaid and now the National Labor Relations Board.
There are challenges Westerly/L&M need to address if the marriage is to
succeed and quality of patient care is to be raised from mediocre to good.
Obeying the law and cleaning up the organizational structure to avoid further
violations of the law would be good places to start.
