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The Honolulu Advertiser
Posted on: Wednesday, April 25, 2007

Both sides at St. Francis claim victory

By Greg Wiles
Advertiser Staff Writer

Hawaii Medical Center LLC, which bought the St. Francis Medical Centers this year, said it is delighted with an arbitrator's decision requiring it to rehire some of the workers it fired after it took over the hospitals.

Hawaii Medical Center said while arbitrator Michael Nauyokas ruled some of the more than 150 who were let go must be rehired, the ruling didn't require the for-profit hospital system to take all of them back. The company said it was also pleased Nauyokas confirmed that it was within its rights to restructure its workforce.

"We are delighted with the arbitrator's decision even though we did not prevail on every issue," said Dr. Danelo Canete, Hawaii Medical Center chief executive officer, in a news release. Canete and 130 other local physicians partnered with Wichita, Kan.-based CHA LLC to purchase the St. Francis hospital system in January.

"We are particularly pleased that the arbitrator rejected the Teamsters' contention that HMC was contractually obligated not to eliminate any work positions for one year after taking over the hospitals," Canete said.

Hawaii Medical Center's purchase of the money-losing St. Francis Medical Centers in Liliha and 'Ewa came after a long search for new owners. Hawaii Medical Center came in saying it would make at least $32 million in improvements and renovation work at the hospitals over five years.

But just weeks after the sale closed, the Hawaii Teamsters filed an unfair labor practice complaint alleging the hospitals didn't give a required 21-day notice when it handed pink slips to about 10 percent of its 1,500 workers. More than 40 of those let go found other positions with the hospitals.

The state Health Planning and Development Agency has asked the company for more information about its reorganization of the hospitals.

The Hawaii Teamsters said it believed it prevailed in the arbitration on grievances that were filed after almost 70 of its members were let go in February.

The union said it is looking at bringing all of its members back to their rightful positions and receiving back pay for lost wages. It said the hospitals assigned union member work to "call-ins" and nonunion workers.

Other work was given to remaining union members, increasing their workload, the union said.

"We knew from the beginning that we would win this arbitration," said Hawaii Teamsters President Ron Kozuma in a press statement. "The violations were clear."

The union said its unfair labor practice complaint is still pending and that it may pursue other legal remedies related to the firings.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.