Fairness for Workers Key to Restoring Resurrection's Standing

We have urged Resurrection's management to put an end to its four-year campaign to suppress workers' rights if it wants to get back on a path to sound financial health.  Our call follows last week's action by Fitch Ratings, one of the nation's top credit rating agencies, in downgrading Resurrection's outlook from stable to negative.  Fitch cited, among other things, poor management practices.

For the past four years, Resurrection hospitals have been locked in an intense conflict with workers seeking to form a union with the AFSCME Council 31.  Employees are seeking union representation because of concerns about the impact that the hospital chain's rapid expansion has had on working conditions and patient care.

"Resurrection Health Care continues to face a myriad of problems caused by poor management decisions," said AFSCME Council 31 Executive Director Henry Bayer.  "The news that the hospital chain's debt rating has been downgraded is indicative of an ongoing failure to develop sound operational policies at a majority of Resurrection's hospitals.  The negative consequences for the quality of patient care have necessitated state monitoring at several of the hospitals.

"We believe that Resurrection hospitals have a critical role to play in our communities," Bayer said, "but Resurrection cannot possibly achieve its potential without the full involvement of its talented and dedicated workforce.  Quality care and strong financial performance start with heeding the concerns of frontline caregivers."

"Unfortunately, Resurrection management has methodically fostered a climate of fear and intimidation in the workplace, and used every available means to thwart employees' efforts to have a voice at work," he added.  "Reliance on high-priced anti-union consultants and lawyers is not going to bring out the best in your workforce."

Recently, Resurrection entered into a settlement with the National Labor Relations Board regional office that included a requirement that the company inform its employees that they have the right to express support for labor unions.  The settlement came in the wake of a complaint issued by Region 13 of the NLRB alleging that Resurrection hospitals had violated their employees' rights under federal labor law.

"If Resurrection wants to return to solid financial footing, it can begin by ending the hostilities with its own employees," Bayer said.  "You're not going to be able to put sound operational practices into place in a service-driven institution if you don't have the full support of the workers providing those services."

"It's long past time for Resurrection to come to the table and negotiate a fair process by which its employees can decide on unionization.  Justice demands this, but it's also critical to restoring Resurrection to financial health," he concluded.