SRMC Crisis Update

Sunday, November 02, 2008

SRMC Crisis Update #1

REDDING - Union staff is working diligently to deal with the unexpected termination of approximately 450 UPEC-represented medical employees at the Shasta Regional Medical Center. 

This is what we have learned as of November 2nd, including information obtained from a meeting this date with an attorney from SRMC’s new owner, Prime Healthcare Management, Inc.  Please note that this information is accurate to the best of our ability as this date.  We will add and/or correct information as we get it.

a.Prime Healthcare Management, Inc. (PHM) has formed a subsidiary, Prime Healthcare Services Shasta LLC (PHSS) to operate SRMC.
b.PHSS has obtained a license to run SRMC and is considered the new owner of the operation effective November 1, 2008.
c.PHM or PHSS has a lease/option to purchase the land and physical facility.
d.All SRMC employees were terminated as of October 31, 2008.
e.UPEC has filed an Unfair Labor Practice charge with the federal government (NLRB) against SRMC and PHM regarding the terminations.
f.Selected employees were given applications to work for PHSS.
g.There may be no seniority-based layoff issue or rights because all employees were apparently laid off (terminated).
h.SRMC did not provide the required 2 weeks notice of termination or in lieu of such notice 2 weeks of severance pay as is required by contract.
i.SRMC did not provide longevity based severance pay as is required by policy.
j.Employee 401(k) accounts are intact although contributions have ceased effective October 31 2008 due to the mass termination. 
k.Health insurance for employees who are rehired by PHSS will continue with the current carriers at least until and unless PHSS changes plans in the future. 
l.The status of health insurance for employees not rehired by PHSS is unclear.  We will be seeking clarification from the insurance company and SRMC. 
m.PHSS has not yet recognized the Union as the representative for the two units we represent at SRMC (RN unit and LVN/Tech unit). 

UPEC’s Response

-We are consulting with our labor attorney regarding all possible legal claims against SRMC and/or PHSS regarding severance pay due, seniority issues, union recognition rights, etc.  We will follow counsel’s advice regarding filing grievances, lawsuits, unfair labor practice charges, etc.  This will be determined the week of November 3. 

-We have established a Member Help Center that will initially be staffed 9 am to 3 pm or by appointment Monday, November 3 through Thursday, November 6.

-We request all SRMC employees in the RN and LVN/Tech units come to the Union Office at 1860 Park Marina Drive or call at 245-1890 in order to open an individual case so that we can assist with any issues this termination and owner transition has caused.  Refreshments will be available so please stop by. We will assist with:

a. Verifying final paycheck accuracy and assisting with any needed corrections.
b. Filing grievances and/or claims as appropriate for each employee.
c. Assisting with insurance and financial advice referrals.
d. Providing our own in-house crisis counselor (on-site).
e. Clerical support for resume updating, copying, mailing and computer access.
f. Any issues or questions you give us to resolve.

Thank you for your attention to this update.  We sincerely hope you will use our services to assist you in this catastrophic situation.

Please be assured that this Union is committed to representing SRMC employees under the new owners and in assisting in any possible way those employees who are not employed by the new owners.  We did not step away from representing RMC employees when Tenet withheld dues deduction for three years and we will not step away now.
I invite your comments, idea’s and suggestions by clicking on “Comments” below.