La Clinica settles over union complaints

PASCO -- Community Health Center La Clinica is embroiled in a dispute with the union representing more than half of its workers as a contract is set to expire at the end of March.

The clinic announced this week that it has settled with the National Labor Relations Board after the federal agency investigated union allegations that La Clinica had used unfair labor practices to convince workers to accept new employment terms.

Office and Professional Employees International Union Local 8 in November submitted charges to the board complaining that La Clinica had violated federal labor laws by threatening employees with firings or layoffs if they didn't agree to reduce or eliminate benefits or get rid of the union, failing to negotiate new personnel policies with the union, and didn't provide the union with information relevant to negotiating and enforcing the contract.

"From our perspective, they are on a mission to get rid of the union," said Cindy Schu, OPEIU organizing director.

La Clinica CEO Carl Walters II denied that his administration had taken any steps to get rid of the union or to coerce employees.

"What is important for the community to understand is that the objective of this administration is to negotiate a union contract that is fair and equitable and financially stable moving forward," Walters said. "We value our union employees as we do all of our employees."

Walters was hired as La Clinica's CEO in March 2009 after several years of turmoil and financial instability that included nearly $500,000 in payouts on employee lawsuits and a lawsuit by a board member alleging a previous CEO had wasted clinic assets.

More recently, the clinic had to repay $500,000 in public mental health funding to Benton and Franklin counties when officials discovered the money had been applied to the wrong account and was not spent on mental services as contracted.

Walters has been involved in a yearlong effort to stabilize the clinic's management and finances, and said the union misconstrued some of the conversations he's had with clinic employees about its financial situation.

"At no time did I ever threaten employees with additional layoffs if they did not agree to potentially take cuts in benefits," he said. "I was simply laying out the business reality of what we as an administration have to look at."

He said many of the union's allegations stem from a staff meeting during which he discussed the clinic's situation with all employees, not just union members.

"We were kind of taken aback that something like that was taken out of context," he said. "I never met with just union employees. When I meet with staff, I meet with all staff at the same time."

During that meeting, which Walters described as an "overall state of the health center address," he said he told employees that because of the recession and pending cuts in state funding, the clinic would need to tighten its belt as many other businesses had.

That would include re-evaluating staffing and benefits, as payroll is the clinic's largest expense, he said.

"The decision to cut employees is always the last option as it relates to this administration, therefore we needed to look at everything," Walters said. "I would rather cut (benefits) if that's what I needed to do to keep this place afloat than showing people the door."

But the union interpreted subsequent talk about that meeting -- and reputed moves by Walters to lay off employees and contract out their jobs -- as attempts to undermine the union.

Schu said OPEIU submitted charges to the National Labor Relations Board because the union believed the clinic had violated the law with its actions.

Rich Ahearn, NLRB regional director in Seattle, said the investigation turned up enough evidence of a violation that the agency could have filed a formal complaint against the clinic and started litigation, but opted to give the clinic a chance to settle.

"We found merit to a number of the allegations and they agreed to settle," Ahearn said.

Formal findings that La Clinica violated labor laws can be made only through litigation, he said.

The settlement agreement says La Clinica does not admit to any violations but agrees to comply with terms of a notice to be posted on its premises for 60 days.

The notice -- drafted by the National Labor Relations Board -- provides a list of things La Clinica agrees it will and will not do, including that it will not threaten employees with job loss or refuse to bargain with the union, and will rescind employee policies the union argued should have been the subject of collective bargaining.

Walters said most of the union's allegations had no merit, but that La Clinica agreed to the settlement rather than spend clinic funds on litigation.

The current contract with OPEIU members expires at the end of March. Negotiations continue.

-- Michelle Dupler: 509-582-1543; mdupler@tricityherald.com