Lawrence + Memorial Hospital Unions Accuse Corporation Of "Shell Game"

The National Labor Relations Board will hear a complaint by the Lawrence + Memorial Hospital unions, which have accused the L+M Corporation of establishing “shell corporations” to undermine collective bargaining.

The NLRB issued a formal indictment against L+M. The complaint sets a trial to hear evidence before an NLRB administrative judge, beginning at 10 a.m. on Oct. 21 at the A.A. Ribicoff Federal Building in Hartford.

The complaint says L+M created an “alter ego” corporation by establishing L+M Physician Associates and later changing its name to L+M Medical Group to incorporate doctors employed by the Atlantic Medical Group at Westerly Hospital in Westerly, R.I. The L+M Corporation is in the process of buying the Westerly Hospital.

The unions charge that L+M is attempting to move employees to the alter ego corporations to undermine the union. Representatives of the unions say about 150 employees at L+M Medical Group receive pay and benefits well below those of workers who were replaced, and that this is undermining the quality of care in the region as well as labor relations.

“They’re basically outsourcing to themselves,” said Lisa J. D’Abrosca, president of AFT Connecticut Local 5049, the registered nurses’ union. “The labor ruled that this is not acceptable.”

Stephanie D. Johnson, president of the AFT Connecticut Local 5051—the licensed practical nurses’ union—said 22 people have lost their jobs at L+M on top of 22 layoffs in November and that the corporation’s actions increase the risk for more job losses. She said the transfer of services from the hospital to clinics makes them less accessible.

“It’s becoming more and more impossible for our clients to get there,” she said. “We’re also concerned about the care of our patients.”

“Management should devote their time, energy and resources to patient care, not union busting,” said Harry Rodriguez, a health unit coordinator at L&M Hospital and president of AFT Connecticut Local 5123, in a statement. “But that is exactly what they’ve been doing by creating these shell corporations to displace the hospital’s professional caregivers and health care staff.”

The NLRB complaint says L+M has been uncooperative in the unions’ efforts to acquire information on the transfer of services to L+M Medical Group and has inhibited collective bargaining. The board is advocating that L+M recognize the services in L+M Medical Group as the same as those performed at the hospital, while the board’s acting counsel general is looking to have L+M provide contract pay and benefits to the L+M Medical Group employees retroactive to January.

Michael O’Farrell, spokesman for L+M, said the corporation remains committed to patient care and confident that its actions have been proper and legal.

“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,” O’Farrell said. “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.”

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