Chapter 9. A Second Chance - 1986

January Conflict Within Union.................................................... 504

February Certification Committee................................................. 512

March The Pension Fund.......................................................... 514

April Absentee & Tardiness Policy Again............................... 520

May Planning for Turn Around............................................... 523

June More Negotiations......................................................... 527

July More Layoffs.................................................................. 531

August Results of Negotiations.................................................. 534

December In The End..................................................................... 546











































Chapter 9. A Second Chance - 1986

January 1986 - Preparing for Financial Disaster

Beginning of January 1986

El Rio HMO patients begin using the Health America Urgent Care Center. Using an urgent care center instead of the emergency room involved a stark difference in cost. The average emergency room costs were about $268.00 per visit in contrast to $80.00 for a visit to an urgent care center.

The second Interim Agreement scheduled for January l, 1986 could be renewed by mutual agreement on a quarterly basis til August 31, 1986.

It became increasingly clear that El Rio had begun to prepare for bankruptcy.

The union was limited in its ability to protect jobs because of both by the dire financial situation of the clinic but also by the legal provisions governing a firm who filed for Chapter 11 Bankruptcy. El Rio had been expected to file for bankruptcy under Chapter 11.

Although court decisions varied on questions involving union contracts with firms which filed for bankruptcy, Chapter 11 requires that prior to the rejection of a collective bargaining agreement the employer must make proposals of contract modification that will enable reorganization. The firm must then participate in good faith negotiations with the union over those proposed contract modification.



January 6, 1986

Memo from Irene Rodriguez, Health Education Assistant to Personnel Department and AFSCME

Layoffs had been announced. Strategies to deal with these problems were beginning to be implemented. Here is an example of the usage of "bumping" rights.

"In view of the fact that my present position will be eliminated effective January 17, I would like to exercise my rights as an employee with six-years seniority to return to the Accounts Receivable Department in the position of Insurance Clerk. I held this position previously from 10/2/79 to 8/2/83."

January 8, 1986

Letter from Seven Union Members to Russ Binicki, President of AFSCME Council 97

Sylvia Ortiz thought management had taken advantage of the union because she believed there had been uncontested violations of the contract. Somehow, Lydia Sanchez learned about Ortiz's position. Through the years, employees in Sanchez' suite had filed several grievances and won them all. So when Ortiz complained about the union, Sanchez gleefully went on to tell others about this dissatisfaction. Word passed to at least two employees about the Ortiz view of the Stewards. Some union members in the Claims Department, upset by this divisive position by a union official, wrote to the AFSCME staff in Phoenix.

Excerpts from letter:

"El Rio . . . is currently going through severe financial difficulties resulting primarily from poor management by former management staff. The Center's financial status had been grossly understated until a recent audit showed an approximate $5.2 million dollar deficit as of June 1985. Discovery of these difficulties have led to significant lay offs of El Rio employees.

Given these extraordinarily difficult times, the . . . [union] has been a major protection of employees rights. We have maintained most of our officers and stewards, and have two active and functioning committees: Negotiations and Health & Safety. Our Chair, Mary Lou Gonzales, has conscientiously endeavored to maintain the contract and the cohesion of the division in a democratic arena. Our stewards have successfully interceded on behalf of our membership and in protection of our contract . . . we have held regular monthly meetings. Our membership is regularly informed of events through a newsletter which goes out to the membership at least once monthly. Negotiations, by their nature, means give and take and during this difficult time we have made some concessions but have also gained needed benefits. Contracts negotiated in 1985 were ratified by an overwhelmingly supportive membership. We have developed programs, in cooperation with the new management, that have resulted in new jobs and opportunities for employees who suffer the burden of lay offs. Still, we have many problems dealing with reorganization and bumping rights that are being handled by the AFSCME staff.

... we are expecting that after this series of lay offs we will have 61% membership in the bargaining unit. It would be easy to attribute this to management, but unfortunately, some of these losses must be attributed to the actions of a Council 97 Executive Board member, Sylvia Ortiz, who is employed as an Accountant at El Rio. At an incident on January 8, 1986, she told two employees that the contract was worthless because it wasn't being upheld by the union. We have reason to suspect that others have been similarly approached. Employees who are concerned about their rights should be advised to either go to a steward or AFSCME staff. Ms. Ortiz's action was totally inappropriate for a member of the Council 97 Executive Board and served to undermine the structure of the union as well as encourage withdrawal from union membership.

Because it is essential that at this time especially we protect the structure of the division, we ask that you take whatever appropriate action is necessary to correct this problem."



January 14, 1986

Certification Committee Meeting

The Certification Committee functioned at this time. It had a planning meeting which outlined places where family health workers might enroll in study which could lead to certification. They planned to contact the places to determine which most suited their needs.

January 17, 1986

Memo from Larsen, Chief Negotiator to the Members of the Union Negotiations Committee

The AFSCME staff person, Frank Morales, had the union's attorney review the language that management submitted on the pension plan. This memo informed the committee of the attorney's advice.

"Per Frank Morale's conversation with our attorney . . . regarding the Pension Plan Contract Language:

1. The provision in the contract and the opinion letter will maintain the Pension Plan status under ERISA.

2. We should attempt to negotiate a waiver for three or four years instead of seven years.

3. All other contract language regarding the pension plan is satisfactory.

El Rio's management is currently checking with Insurance carriers to confirm that El Rio's Board of Directors [and possibly Officers] are indemnified either through a "Director's and Officers Error and Omission Policy" or a "General Liability Policy."

Please read the contract language. If you have any further questions or are dissatisfied, please call me over the weekend at home . . .

Please be prepared for a short meeting at noon in the auditorium on Tuesday."

Interim Labor/Management Agreement

Larsen assumed the role of Chief Negotiator for the union while Gomez headed the management team.

Management agreed to limit the freeze of the pension plan until May 31, 1987, provided the issue could be raised again at negotiations.

Other issues discussed and agreed upon in this short negotiation were the hours of work and benefits for non-providers.

The provision sought and won involved "Non-Providers." It limited overtime to not more than 15 hours in any single pay period and for not more than three consecutive months.

Under "Benefits" the new contract language gave El Rio employees the option to receive Health America services at an alternate site.

Along with Larsen, the Chief Negotiator, were six employees: one family health worker, two family nurse practitioners, one employee from maintenance, one physician, one registered nurse. A staff person from AFSCME also served on the team.

While many employees considered Gomez the enemy, the level of hostility receded, in contrast to the earlier conflict of 1980.

January 23, 1986

Certification Committee Meeting

The Certification Committee learned that the Pima County Skill Center did not, at that time, provide free training for employed workers. If El Rio had enough interested employees, they might be able to get a training program established by the skill center. The employees were expected to pay for the education program but attempts might be made to secure outside funding.

So, the committee needed to find out what the program cost and if the number of interested workers affected that cost. Another concern involved the degree to which the certification received recognition by other employers.

The employees discussed how to obtain the needed information.

January 30, 1986

Reaffirmation of and Amendments to The Interim Agreement of Aug. 26 - September. 6, 1985

A provision existed in the preamble which maintaining the basic contract along with the Interim Agreement.

"During the duration of the 'Interim Agreement' the Labor/Management Contract shall be comprised of the Basic Labor/Management Agreement as modified by the Interim Agreement."

One provision dealt with the health benefits and allowed all employees, "at their option" to receive the health care through Health America.

There were changes in the dental care, allowing for a $5.00 co-payment and specifying a minimal charge for certain services.

Language was added that allowed El Rio to apply to the Internal Revenue Service for a waiver of contribution for compensation earned. If the waiver received approval, provisions had to be made to repay the pension plan after five years and also to deal with employees who might be laid off.

Contributions to the employees' pension plan were frozen. Nevertheless, employees could make their own contributions.

Prior to negotiations, employees expressed particular concern about the pension fund. They were concerned about the viability of the fund and whether or not they would ever see that pension. This worry came to the negotiations and while the union allowed a temporary suspension of the funds, it wanted to make sure that funds were protected and whole, and that they would be there for laid off or retired employees. Management demonstrated sensitivity to these concerns and, overcoming severe difficulties, took steps to insure employees' pensions.

This second Interim Agreement scheduled for January 1, 1986, could be renewed by mutual agreement on a quarterly basis until August 31, 1986.

About End of January 1986

Memory and Notes to Agenda for Board Meeting May 29, 1986

As the HMO would be sold to Health America, Larsen's position might be expected to be among those cut. Management directed Larsen to negotiate the settlement of outstanding claims offering "50 cents on the dollar" for the unpaid bills. Knowing that when she completed that task, no viable role for a claims "lead person" existed, Larsen proceeded to negotiate the settlements with outside providers of medical services. Larsen expected that her job would be finished by summer. Unless she wished to bump someone else, something she was not willing to do, her work at El Rio could be expected to end. Larsen decided to stay on to complete the series of negotiations with outside companies, which in the end would be completed about the middle of July 1986.

Larsen would negotiate settlements and accomplish the forgiveness of much of El Rio's debt caused by the expenditures in purchased medical services.







































February 1996 - Certification Committee

About Mid February 1986

Union Newsletter

"Certification Committee

At the January general membership meeting some members expressed interest in getting certification for the family health workers. This matter had been started in the past and never completed. Although the Pima County Skill Center does not provide free training for employed workers, if we have enough interested employees we might be able to get a training program established by the Skill Center and we plan to look for funding sources. A Certification Committee is now actively finding out how many union members are interested in becoming certified. Amelia Daniels is circulating a sign up list for union members interested in certification. Contact Amelia Daniels if you are interested in participating. The time and place of the next Certification Committee meeting will be posted on the employee bulletin board."

Within a short time, the employees did take the necessary classes that enabled them to be certified. Most took the required classes and did very well. They were CNAs, certified nurse assistants. When they received their certification in June, they celebrated their achievements.

February 17, 1986

Letter from Kathryn A. Riser, Director of Finance to Paul Turner of M. Paul Turner & Company Regarding the Pension Plan.

"In response to your February 7, 1986 correspondence to me, I have enclosed a copy of the El Rio pension account activity at the Arizona Bank. This activity covers the period June 1, 1984 through May 31, 1985.

I have related your concerns regarding the verification of 1984 contributions to both David Kohn, Director of Personnel and Josie Guerena, Payroll Clerk. Both employees stated that you already have the information needed to complete your year ended May 31, 1985 certificates.

Please call me with a detail of items you feel are still lacking for a timely completion of these certificates."

Unfortunately, this letter did not bring a satisfactory response. A second letter marked "HAND DELIVERED - RETURN RECEIPT REQUESTED" went out on March 11. It would be several months and some costly efforts before they could secure the pension.

February 19, 1986

Employees vote to ratify the Interim Agreement.

March 1986 - The Pension Fund

March 11, 1986

Letter from Robert Gomez, Executive Director to Paul Turner of M. Paul Turner & Company, Regarding: Employees' Retirement Plan

"Approximately three (3) months ago, we requested various documents pertaining to the plan, including documents necessary to be provided to Participants for the year ended May 31, 1985. To date, we have not received any of those documents. Those documents are described on the copy of the letter sent to you which is attached. We are obviously very concerned about any penalties that may be assessed for failure to provide any forms or file any reports necessary with the Internal Revenue Service or Department of Labor; . . . Again, to date we have had no definitive answer to these questions. As you are also aware, the necessity of immediate distribution of some of these forms is not only required by law, but prompted by our current negotiations with the union. As we explained to you on several occasions, and again last week and again on Monday of this week, the union has advised us that the negotiations will come to a screeching halt should those participant benefit statements for the year ending May 31, 1985 not be delivered to participants by Friday, March 7, 1986. Despite assurances from you on Monday, March 3, 1986, that those statements would be delivered to us within 48 hours, we still have not heard from you. In fact, we have been unable to reach you by phone or in person at your office.

The union has stated on several occasions that they are willing to cooperate with us, and that is why the initial extension by the union was granted for delivery of certain forms, but if they were to back out of the present negotiated provisions, El Rio could stand to lose a very large amount of money, and our legal advisors have advised us that any loss which we incur as a result of another party's negligence should be passed on to the party, by bringing a claim against such party or filing suit. You should be aware that we will certainly not absorb any liability caused by your failure to provide forms which are required by law and are obviously within your scope of duties as administrator to the Plan.

The union has stated that it will do whatever is necessary to obtain necessary information regarding the plan, and they have been advised by their counsel that a letter to the Department of Labor and to the Internal Revenue Service may speed up the process a bit. We of course would like to avoid any further complications in the matter, including involvement with the Department of Labor or the Internal Revenue Service, but that decision will be made by the union.

If we do not receive the required participant benefit statements, summary annual report, and copy of the 5500 Series Annual Return/ Report required for the year May 31, 1985, with proof of filing, by 5:00 p.m., Thursday, March 13, 1986, and the other information requested in the attached letter by Friday, March 14, 1986, we will arrange with another administrator to have that information prepared for the year ending May 31, 1985, and we will seek reimbursement of any costs incurred thereby, and a refund of any fees paid to you for that fiscal year of the plan."

March 25, 1986

Union Newsletter

"Negotiation:

Although, we have just recently held a ratification vote, the Interim Agreement calls for renewal by mutual agreement on a Quarterly basis. Negotiations will begin again on Wednesday, March 26, 1986 at 4:00 p.m. in the auditorium.

Management has already submitted a formal proposal to change to a semimonthly payment.

Management has presented the following reasons for the proposed changes:

1. Improve the clinic's control over cash flow.

2. Make it easier to prepare accurate reports reconciling planned versus actual expenses and income.

3. Allow for more efficient and productive use of time in the Personnel, Accounting, and Data Processing Departments.

4. Reduce the amount of money we have to pay our outside payroll service bureau.

Many employees, however, have expressed strong objections to the proposed change. They are saying that such a change will have an adverse effect on employees who live on a tight financial budget, from one payday to the next. In addition, concerns have been expressed that such change would undermine payment plans which have been established to interconnect with the current biweekly paychecks.

Certification Committee

The Certification Committee is busy looking for funds to help pay for the certification of Family Health Workers. One of the ways we would like to make money is by a fund raiser at the Center. Other sources are being checked. We also are looking for a teacher. Thirteen union members have signed up with Amelia Daniels. Date and time of the next meeting will be posted.

Annual Convention

At the last Local 449 General Membership Meeting, an Issues Committee was formed to bring the Local's legislative concerns and interest to the State APEA/ AFSCME Council 97 Convention this August. We also will need to elect delegates to this convention. If you are interested in serving as a delegate, start coming to the Local membership meetings at the Union Hall. We will announce those dates and times."

The Chief Steward, Edith Underwood RPh, wrote an article entitled "Employee Rights - Know Your Contract."

"You, as an employee, should become very familiar with your contract and rights. The Labor/Management Contract contains important information of which you as an employee should be aware. If you do not have a contract, please contact Edith in Pharmacy at . . .

Some Employee Rights . . .

You, as an employee, upon request, can have the right to union representation . . . during:

1. Progressive disciplinary action.

2. Discussion with employees involving permanent work status changes.

3. For meetings requested by the employee with their supervisor(s) on job related concerns.

Q. What is progressive disciplinary action?

A. Progressive disciplinary action involves a formal oral reprimand between the supervisor and the employees. If discipline is to continue, the employee will receive a written reprimand. The employee has the right to file a grievance provided the time requirements are met. The next step in progressive disciplinary action would be suspension without pay. Termination is the third step.

Summing up . . .

If you need to discuss job related concerns, possible questions in understanding the contracts, employee rights, please get in touch with a union representative. This communication is a vital link in your active search for just treatment at your place of employment

As union brothers and sisters, lets work together to develop increased quality communications between all employees, union and management. I firmly believe many problems can be solved at the first level by improving communications between the parties involved.

About this time, the pharmacy aides gained upgrades if they got additional education. The upgrades meant that when the aides gained labeling knowledge about the prescriptions, they could earn degrees, associate of arts (AA degree), as pharmacy technicians and get compensation in wage increases.

This edition of the union newsletter also had an article by M.L. Gonzales which solicited nominations for union and one article that discussed the pension plan.

"Nominations for Union Officers:

Help Wanted: El Rio Union Officers: Chairperson, Vice-Chairperson, Secretary, Chief Steward, and Negotiation Committee.

Qualifications: Must like people, be hardworking, be honest, dedicated, and responsible.

When: Nominations at the next general membership meeting

April 8, 1986 at 12:00 noon.

Place: El Rio Auditorium

Benefits: Satisfaction of a job well done, respect of your union brothers and sisters, privilege of representing your union brothers and sisters.

As a union officer I have been happy to work with staff, fellow officers, committees and members. I thank members for their work, cooperation, and support in the difficult decisions and concessions we have to make to help El Rio survive. I want to step down to give other brothers and sisters the chance to serve. I would still work and support union officers and activities. I believe in the training and development of union leaders, as well as organizing and building the union. In the next year I need to take time for professional and personal interests.

[Signed] Mary Lou Gonzales, El Rio Division Chair

Pension Plan

Although, the Center has been making good faith efforts to obtain Participant Benefit Statements and the Summary Annual Report for May 31, 1985 they have been unsuccessful. Such reports are required before the provision in the Interim Agreement involving Pension Plan waiver and freeze could be implemented.



The Center has been discussing with union officials its attempts to obtain the reports and its plan to change from the current Plan Administrator to Plan Administration by the Arizona Bank."

In addition to the above, the newsletter carried a questionnaire to poll members about issues to be discussed at negotiations.

End of March 1986

Memo from Kathryn Riser, Director of Finance to Board of Directors

For the first time in years, a financial statement showed a net gain instead of loss. The gain had come in an earlier month so the profit showed as a "year to date profit."

"Operations for the month of March reflect a net loss of $81,818 a year to date profit of $109,070."

Still, the situation remained ominous.

April 1986 - Absentee & Tardiness Policy Again

April 16, 1986

Memo from Gomez to Board of Directors

The auditors informed the board that past errors were found in the El Rio's taxes. El Rio could be subject to a maximum assessment of $15,000 per year plus interest and penalties for the last three years of incorrectly filing Form 5500. The new auditor suggested that El Rio should notify the IRS about the problem while explaining that new management as well as new auditors discovered the past errors. This was probably done.

April 18, 1986

Accounting Firm's Proposal

The accounting firm of Ernest & Whinney presented a proposal which outlined an audit of the El Rio Pension Fund. The accounting firm anticipated that their professional fees were to range between $8,000 and $10,000.

Memo from David Kohn, Personnel Manager to Mary Lou Gonzales, Chair, Regarding: Draft of Attendance/Tardiness Policy

Gonzales' term as union Chair would expire in May.

"Interim Article XV (9/6/95) mandated that 'By February 1, 1986, a policy concerning sick leave attendance and/or punctuality will be developed by the Center in consultation with the union and subject to the provisions of this contract.'

While we have not met this deadline, we are currently working on a policy which will meet the needs of the center. I met last week with Edith Underwood for the purpose of consulting with union leadership on this issue. At that meeting a number of questions were raised in connection with any policy which may be adopted.

The questions raised involved: (1) what constituted authorized or excessive absences or tardiness, (2) extraordinary circumstances, (3) distinctions between employees and their family when dealing with sick leaves, and (4) distinctions between single or multiple absences for a single but extended illness.

Kohn's concluded:

"We look forward to receiving your comments, and to consulting with you again in order to develop the best possible policy."

The union did review the policy, offered suggestions for changes, many of which were incorporated in the policy, and without rancor the union supported the policy.

April 20, 1986

Union Officers

The nominations for new officers were taken this day. There were no contested races so the employees nominated knew they were to assume office about the middle of May.

April 24, 1986

Memo from Lionel E. Tapia, MD to El Rio Board of Directors, Subject: Medical Director's Report.

El Rio began to standardize their reporting system as it related to utilization review. New reports from the Data Processing Department reviewed utilization by patient type, referral type, payment source and provider of health services.

These new reports were being discussed with Unit Chiefs and their team physicians.

Board of Directors Minutes

Ms. Riser pointed out that El Rio was in the process of trying to get medical certification for El Rio's laboratory. To do this, El Rio must have a pathologist. Even though a pathologist could cost $250.00 per hour, El Rio would charge Medicare for lab services and this could result in increased revenue from Medicare. The board voted unanimously to hire a part time pathologist for 4-8 months.

A motion had been made and passed by the board to extend the service area to the entire City of Tucson. For several years, the concept of the "community" health center had been eroding. This totally and unambiguously ended that concept. People living not only throughout the city, but eventually anyone in the county or state could be available for enrollment at El Rio. Some employees believed that there would be a corresponding decline in the ability of community people to afford El Rio services.

Gomez pointed out that the Dental Department had implemented a productivity reporting system which showed the department providing more services for lower costs.

When asked, Gomez claimed that El Rio had not lost money on its capitated rate with St. Mary's Hospital.

On bills for services rendered by El Rio but unpaid by the patients, El Rio offered a 50% discount to patients who paid within three months under an amnesty program. After three months, the bills went to a collection agency.



May 1986 - Planning for Turn Around

May 13, 1986

The Board's Budget & Finance Committee

Kathryn Riser, the Director of Finance, presented the bleak financial status of El Rio. She indicated that El Rio had been working on reducing the more than five million dollar debt. The major part of that debt involved money owed to various hospitals and physicians who provided specialized services outside of El Rio. El Rio explained the strategies to deal with those problems.

Even though not included in the committee's minutes, a major strategy for reducing the clinic's debt involved lowering the medical accounts payable by negotiated settlements.

First, El Rio expected to continue to receive funding of the grant from the Department of Health and Human Services.

Secondly, El Rio planned to work cooperatively with outside providers of health care. As of January 1, 1986, El Rio considered providing primary and some speciality care on a capitated basis to enrollees of Health America's HMO. El Rio planned to serve as the provider of primary care to 1,000 Health America members. Additionally, El Rio expected to continue to service 3,400 AHCCCS patients through an arrangement with St. Mary's Hospital's Mercy Care.

The third strategy involved serving the Yaqui Indians in a joint project with the Southwest Catholic Health Network and Carondelet Health Services. Through this plan, El Rio continued to provide primary and ambulatory care services to enrolled tribal members on a capitated basis.

The fourth strategy involved the collection of $500,000 from AHCCCS for past services that El Rio had delivered but had not received compensation.

The fifth plan increased the collection of monies due from patients. El Rio planned to implement a 50% discount on outstanding balances during a grace period. If the patients did not pay during that time, then El Rio planned to turn the bills over to collection agencies.

About Mid May 1986

The new union offices, nominated and selected in April, officially took on the responsibility of their respective officers at this time.

Chair: Shirlee Greason, RN

Vice-Chair: Nellie Santa Cruz

Secretary: Irma Ullibarri

Treasurer: Mary Romero

Chief Steward: Susan Mireles, RN

Susan Mireles would not to complete her term in office. She and David Kohn, Personnel Manager, began seeing each other and sometimes later they got married. As such a relationship appeared inappropriate for a Chief Steward, Mireles, without rancor, stepped down.

Greason began to get very involved in union affairs and served the union in many capacities over the years to come.

Greason came from an old family that lived more than five generations in what is now Arizona. When the family first moved into this area, this area belonged to Mexico.

Her first experience with El Rio reached back to the early days when El Rio was located in the old Mother Higgins facility. At that time, Greason did not yet have her degree. When she again applied for employment at El Rio in August of 1984, she had her nursing degree and was hired. At first she worked in triage and for a while in pediatrics. She later worked at El Rio's Yaqui facility outside the main clinic and remained there a number years. When Greason became Chair, she already worked out at the Yaqui facility and this posed a problem because most of the employees in the bargaining unit were at the main clinic. Even with this difficulty, and also being mostly unaware of the early history of the union, Greason persisted and became a long term dedicated member.

May 21, 1986

Notes to Financial Statement Presented by the Board's Budget & Finance Committee.

In regards to the pension fund, it was reported that an audit of the fund would be expensive,

"...since an audit has never been done before." In notes on the financial statement it was explained that El Rio's previous auditors refused to allow the accounting firm of Ernest & Whinney to look over their paper work. The board voted ". . . to accept an audit of the Pension Plan proposed by Ernest & Whinney and costing $10,000."

In dealing with the debt, one major problem involved the monies owed for medical services purchased outside the clinic. In reference to those monies the report asserted,

"(El Rio) . . . has entered into agreements for 50% forgiveness of short-term obligations with various hospitals and vendors."

Memo from Gomez to All Staff Subject: Absenteeism and Tardiness Policy

After long discussions and through several administrations, El Rio had an Absenteeism and Tardiness Policy that the employees, with the help of their union, could accept.

End of May 1986

Larsen had negotiated settlements and accomplished the forgiveness of much of that part of El Rio's debt caused by the huge expenditures in purchased medical services. Her negotiated settlements cleared a significant portion of the deficit perhaps as much as three million dollars of the debt. Her job at El Rio was finished. After receiving a strong letter of recommendation, Larsen left employment at El Rio.



June 1986 - More Negotiations

June 3, 1986

Union Newsletter

In addition to reporting the results of the election of new union officers and shop stewards, this edition wrote about the planned audit of the pension plan, El Rio's financial position and the Certification Classes for the Family health workers.

Shirlee Greason would serve as the new Chair, Edith Underwood as the Chief Steward and Mary Lou Gonzales would continue to serve on the Negotiating Committee. Joseph Seagle, MD agreed to look out for the welfare of the pension by representing the union on the Pension Plan Committee.

An article on finances showed El Rio's devastating situation while the Certification Classes demonstrated some hope of normalcy.

EL RIO'S FINANCIAL POSITION

A recent audit of El Rio's financial position as of December 31, 1985 was done by the accounting firm Ernst & Whinney. This report showed that the liabilities exceeded assets by $5,099,872. The majority of these liabilities are obligations to various hospitals. In the May 13th minutes of the Budget & Finance Committee of the El Rio Board of Directors it was reported that El Rio would be meeting with a St. Mary's Hospital administrator ' . . . to work out a structure of the reorganization.' Your union officers are maintaining communications with top AFSCME officials about the seriousness of the situation.

FAMILY HEALTH WORKER'S CERTIFICATION CLASSES

Discussion of developing a certification program for family health workers had been going on for several years. For a while it seemed that the goal would not be attained. Then last February, Amelia Daniels asked the union to help family health workers get that certification. Amelia was successful in getting interested union members to sign up for classes. Then the union in cooperation with management helped get the program started.

Classes for family health workers are now a reality, a dream that has finally come true. All of the students are making excellent scores, 90-100%. Union members raised funds to defray the costs of tuition by providing a delicious chorizo breakfast. The moneys raised went to those union members who are students in the program, union members participating in the fund raising were: Isabel Abalos, Belia Canez-Hernandez, Amelia Daniels, Maria Elena Lampart, Pat Marquez-Dewhirst, Rosemary Quezada, Norma Ramirez, Mary Romero, Nellie Santa Cruz and Herlinda Valenzuela. Additionally, Local 449 provided each union member with an added $25.00 scholarship."

One of the first tasks of the new Chair, Shirlee Greason, involved distributing checks to the family health workers who had completed their Certificate of Nursing Assistant training. It was a wonderful way to start. Mary Lou Gonzales credited the perseverance of some of the union members with the accomplishment of obtaining the certification. Elenez was proud of her role in helping to develop the program in spite of her not participating as a student. At the time of the celebration, Elenez was paged and she believed that the new CNAs were going to thank her for her role in helping them. Instead she was informed of an unsatisfactory transfer within the clinic.

But for Abalos, who also had worked hard for this certification, she remembered this achievement as a proud time.

Saturday, June 7, 1986

The stewards again received training at the union offices from 9:00 a.m. to 12:00 noon.

June 12, 1986

Notes from the Meeting of the Negotiations Committee

"1. NEGOTIATIONS COMMITTEE CHAIR SELECTION

Gloria Gonzales was selected as Chair of the Negotiations Committee

2. CHIEF NEGOTIATOR FOR UNION

The Chief Negotiator for the union during all negotiations since May 1985 has been Ethel Larsen. Since Ethel Larsen will not be serving on this Negotiation Committee, discussion was held regarding who would be the new Chief Negotiator . . .

3. ISSUES THAT WERE EXPLORED

A. Maintaining the Integrity of the Bargaining Unit.

There was discussion about the loss of positions and some possible violations of the contract provision governing contracting out. It is not clear at this time whether or not the up coming Interim Negotiations is the appropriate forum to deal with these serious concerns. This will be discussed further with Frank Morales.

B. Sick Leave Policy

C. MOUs regarding proposals submitted by the union 3/28/85 and deferred until November 15, 1985 and again 6/86 should be reviewed. These proposals affect the following articles . . .

D. Management's Proposal There was some discussion about what might be management's proposal.

E. Input from the Membership Pat Morris will develop a mechanism for getting input from the membership. The membership needs to know, however, that this is only an interim negotiation and therefore may be limited to financial issues.

4. COPIES OF THE LABOR MANAGEMENT AGREEMENT

Edith Underwood and Ethel Larsen will be responsible for getting complete sets of the Basic Contract and supplementary Interim Agreements to each member of the committee.

5. FUTURE MEETINGS

A. Frank Morales. A meeting to discuss the above with Frank Morales was arranged for 5:15 p.m. the same day at the AFSCME Office. Negotiations Committee Chair Gloria Gonzales, Edith Underwood, Ethel Larsen and Frank Morales were present . ."

Larsen, no longer employed at El Rio, still continued to help the union. That included working as Chief Negotiator until the August 1986 negotiations were complete. Long after Larsen left El Rio, many employees continued to believe she had been laid off because of her activism. But Larsen believed otherwise. While she had the choice of "bumping down," Larsen did not exercise that option. The time had come for her to leave El Rio as she had new adventures she wanted to experience.

July 1986 - More Layoffs

July 1, 1986

Health America began to market El Rio and other private physicians as their primary care network. New enrollees and re-enrollees in the Health America plan could choose El Rio as their source of primarily preventive health care. New enrollees in the plan were no longer limited by geographical concerns.

July 10, 1986

Another round of layoffs took place.

July 23, 1986

After the series of interim negotiations a contract was completed.

This contract provided more defined rules for laying off employees due to the financial conditions at El Rio.

One provision for laying off employees dictated that the last one hired in a particular job category would be the first one to go. This protected the employees with the most seniority if they worked in a classification that had several other employees doing the same type of work.

"If it becomes necessary to reduce the work force or the hours of employment of any classification in the bargaining unit, temporary and probationary employees occupying the affected classes shall be laid off before part-time and full-time employees shall be in inverse order of Center-wide seniority within the affected classifications. (See Interim Agreement, Aug-Sept 1985)

Other provisions dealt with allowing employees with the appropriate seniority to move to a different classification if the employee met the qualifications of that position.

Any employee scheduled to be laid off shall be permitted to move to a different classification within the bargaining unit in which the probationary period was successfully completed if the employed has more Center-wide seniority than an employee within in the different classification previously held, provided the employee continues to meet the current minimum qualifications as contained in the job description for the different classification [bump]. Employees laid off shall be rehired [recalled] to his/her classification in the inverse order of layoff before any position within the affected classification is filled by transfer, promotion or initial hiring.

Those employees laid off might also be recalled if the financial position of El Rio changed or some compelling needs arose. The contract provided language to cover this situation.

An employee who is recalled from layoff shall be notified by certified mail at his/her address on file in the Personnel Department. The employee is responsible for maintaining a current address in the Personnel Department. If the employee does not contact the Center's Director of Personnel within five (5) days of the date of postmark on the recall notice, he/she shall be considered to have resigned from the Center and lose all recall rights. If the employee accepts the offer of recall, he/she shall be available to work within ten (10) days of acceptance."

Additional sections of the contract dealt with defining the term seniority and the concepts of "Transfers" and "Reassignments."

A provision to enable laid off employees to maintain their health care coverage was included. It read:

"Employees laid off during the time of this Interim Agreement may utilize the Center's medical and dental facilities at no charge for a period of four months after the date of termination, however, all other possible reimbursements, including AHCCCS, must be applied. For the purpose of this agreement 'dental facilities' shall be defined as routine dental care only. Routine dental care is defined as that care which the employees have normally received, at no cost, at the Center."

The negotiations that ended that summer were the last of the interim agreements and they were the last for this year.

About End July 1986

Major changes were taking place at El Rio. Some positions were cut, employees were moved from one area to other areas. As they phased out the suite secretaries, Elenez moved to the appointment desk. Her new supervisor, the switchboard supervisor, remained very anti-union. Elenez later recalled that in this department, they did not discuss problems at staff meetings and she felt a loss of job satisfaction through time. Elenez accused of being too solicitously of patients, her supervisor discouraged her from following up on patients' needs.

August 1986 - Results of Negotiations

August 4, 1986

Union Newsletter

As expected, this negotiation proved difficult for all concerned. The union Negotiation Committee went into this session with the knowledge that management should be expected to make some tough proposals. Sufficient information had been provided to convince the committee members that El Rio had critical financial problems and that painful concessions had to be made if El Rio was to continue. The committee's major concerns were (1) how to enable management to develop a budget that allowed the continuance of the clinic, while (2) keeping cuts at a minimum, and (3) maintaining equity in those cuts.

Even with the committee's understanding of the seriousness of the financial situation, management's initial proposal appeared excessive. Management's initial proposal attempted to change Interim Agreements by the suspension of cost of living adjustment (COLA) and the permanent deletion of education leaves. These were not accepted. What follows is a brief outline comparing management's initial proposal with the concepts that were finally agreed upon at the negotiations.

Who is eligible for membership in the Union?

Management Proposed

What Was in the Completed Contract

The two newly excluded employees had been working with payroll and the general ledger. They were Guerena and Ortiz. There were few if any employees who wanted to fight for their presence in the union. Quite to the contrary, many employees expressed relief and possibly saw their exclusion as a kind move by management. But Guerena did not think that her role with the payroll had been in conflict with her role as a union officer. Guerena felt "sold out" by the union when she was put outside the bargaining unit. When reflecting on her strengths and weakness as a union officer, she believed her strong point involved:

"treated employees fairly . . . [and her weak point was that] she did not get involved in other things like meetings."

Also, Guerena did not believe that Ortiz had been put out of the union as she thought Ortiz had been upgraded which resulted in her being out of the union.

On the other hand, the medical unit chiefs were a welcome addition. While physicians rarely caused any problems, they represented a major strength to the union because no management could succeed if the professional health care providers joined a strike. Other employees joining the bargaining unit were also very welcome. This was especially true of workers in social services. The only position that had not been seen as a gain, but which did not hurt, involved the strongly anti-union switchboard supervisor.

The ability to contract out certain work assignments.

Management Proposed

What Was in the Completed Contract

Salary and Wages Issues.

Management Proposed

What Was in the Completed Contract

Because certain supervisors, confidential employees and administrators were outside of the bargaining unit they were not covered by this agreement. A separate memorandum of agreement was signed extending the cuts to these employees. Although providers are also included, CME had been returned and basic provider staffing levels and working conditions protected.

Health Care Benefits

Management Proposed

What Was in the Completed Contract

Education Leave

Management Proposed

What Was in the Completed Contract

Sick Leave

Management Proposed

What Was in the Completed Contract:

Vacation Leave

Management Proposed

Less than 5 years - 1 day p/month = 12 days per year.

More than 5 years but less than 10 years - 1.5 p/month = 18 days per year.

More than 10 years - 1.75 days p/month = 21 days per year.

What Was in the Completed Contract:

Less than 2 years - 1 day p/month = 12 days per year.

More than 2 years but less than 5 years - 1.33 days p/month = 16 per year.

More than 5 years but less than 10 years - 1.67 days p/month = 20 per year.

More than 10 years - 1.82 p/month = 22 per year.







Leaves With Pay

Management Proposed

What Was in the Completed Contract.

Leaves Without Pay

Management Proposed

What Was in the Completed Contract

Re-Organization

Management Proposed

What Was in the Completed Contract

Provider Working Conditions

Management Proposed

What Was in the Completed Contract

Holiday Leave

Management Proposed

What Was in the Completed Contract



Maintenance of Position

Management Proposed

What Was in the Completed Contract

Promotions, Layoff & Work Force Changes

Management Proposed

What Was in the Completed Contract

Pay Period

Management Proposed

What Was in the Completed Contract

August 13, 1986

While El Rio filed for bankruptcy, they did not claim the union contract had caused an undue burden and therefore should be set aside.

August 19, 1986

Memo from AFSCME's State Director to El Rio Union Members, Subject: Bankruptcy Hearing

"[AFSCME's Attorney] and I attended El Rio's hearing on August 13, 1986 in U.S. Bankruptcy Court. We examined the paperwork listing schedules of debtors, met with the hearing examiner and spoke with Robert Gomez and Lowen Rothschild [El Rio's lawyer]. As a result, our attorney will file an official Notice of Appearance, and AFSCME will be part of the process.

During the hearing we learned El Rio has decided to protect all employee leave time. This was good news. In some bankruptcies, sick and vacation time is frozen and then subject to negotiations by the creditors. Because of your ability to help [or hurt] the center, management elected not to tamper with the leave you have built up. This is strong evidence of your clout on the job."

August 27, 1986

Union Newsletter

Among the articles in this edition of the newsletter, were sections on "Vacation and Sick Leave," "Dependent's Health Care Coverage," "Optional Benefits," "Unions Fight for Workers' Interests" and a "1887 Job Description - Hospital Nurses."

UNIONS FIGHT FOR WORKER'S INTERESTS

Although thru out the United States there have been increasing problems for workers and their unions in the 1980's, unions have remained the most persistent advocates of workers' rights before both state and national legislatures. It is, in part, because of this persistence that working conditions have not further declined. When viewed over a longer period of time, unions have played a major role in the dramatic changes of the last 100 years. Improved working conditions of health care workers within the last 100 years has also resulted in improved delivery of health services. These gains can slip away if we are not vigilant and if we do not insure that we have effective spokespersons lobbying to protect our interest.

Although we do not expect to repeat the conditions of 100 years ago, we thought it might be interesting to peek at our past. The following 1887 Job Description describes working conditions of 100 years ago.

1887 JOB DESCRIPTION - HOSPITAL NURSES

'In addition to caring for your 50 patients, each bedside nurse will follow these regulations:

1. Daily sweep and mop floors of your ward, dust the patient's furniture and window sills.

2. Maintain an even temperature in you ward by bringing in a scuttle of coal for the day's business.

3. Light is important to observe the patient's condition. Therefore, each day fill kerosene lamps, clean chimneys, and trim wicks. Wash the window once a week.

4. The nurse' notes are important in aiding your physician's work. Make your pens carefully, you may whittle nibs to your individual taste.

5. Each nurse on day duty will report every day at 7:00 a.m. and leave at 8:00 p.m., except on the Sabbath on which day she will be off from 12:00 noon to 2:00 p.m.

6. Graduate nurses in good standing with the Director of Nurses will be given an evening off each week four courting purposes, or two evenings a week if you go regularly to church.

7. Each nurse should lay aside from each pay day a goodly sum of her earnings for her benefits during her declining years, so that she will not become a burden. For example, if you earn $30.00 monthly you should set aside $15.00.

8. Any nurse who smokes, uses liquor in any form, gets her hair done at a beauty shop or frequents dance halls will give the Director of Nurses good reason to suspect her worth, intention and integrity.

9. The nurse who performs her labors, serves her patients and doctors faithfully and without fault for a period of five years will be given an increase by the hospital administration.' "

December 1986 - In the End

In the End

In the end, El Rio survived its dire financial difficulties and the crushing conflicts and went on to become a model health center.

The original neighborhood concept, however, no longer existed.

A good deal of the credit for El Rio's survival needs to be given to both the new Executive Director, Robert Gomez, and the persistent loyalty of the employees and their union. Gomez, never a great fan of the union, did not irrationally use resources and energy to undermine the union.

The employees, along with the full community, did eventually lose their right to vote for the Board of Directors. The Board of Directors, while not led by poverty pimps, no longer had a close tie to the community and they would be led by autocratic people who also did not value the legitimate role of the community. Because the board was not connected to the community and because of the changed direction of national policies, the tenor and tone of the clinic reflected that change.

Some years later, Gloria Gonzales observed,

"...it was funny because now employees do not have voting rights and we did not know when they finally were taken away. It is terrible that we did not know what was happening."

To Guerena, for whom the employees' voting rights for board members had never been an important issue, believed that two years after Gomez came to El Rio, the board began to be appointed by Gomez.

Reece believed that many El Rio employees wanted to stay with the original mission but that too many "pressures" had to be overcome. Reece reminisced,

"We used to have happy hours. We got to know each other. People would help each other--But those things no longer happen so often."

Some of the old issues continued to reappear but they would be dealt with in a more professional manner.

The union experienced additional ups and downs but in the end maintained its role as protector of the collective employees' interests.

El Rio would not have survived if it continued with poor administrators. While the El Rio's union particiapated in insuring El Rio's survival, an essential ingredience involved the skills and abilities of top management. The well-held myth that unions drag down a business is an excuse commonly used by incompetent administrators. The best scenario requires much integrity from the key competent players who then create honest relationships. Both the facility and the union gain when they have capable administrators and effective unions who worked together toward common goals.