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March 16, 2010

A novel take on prison contract

Commissioners to approve first two years of pact and treat remainder as “advisory” to avoid additional fees.

Luzerne County commissioners plan to take an unusual approach to contest part of a costly new prison union contract.

Read more Luzerne County Government articles

In other business

Commissioners plan to vote Wednesday to publicly advertise the sale of Valley Crest Nursing Home in Plains Township, with minimum bids set at the fair market value of $4.7 million.

The sale will be advertised for three weeks and handled in-house, rather than hiring an outside broker on commission.

The county is free to sell the property because the home’s operator has built a new facility nearby.

The Valley Crest sale will include about 48 acres. The original portions of the nursing home were built in the 1950s and ’60s. County officials say the building is structurally sound but outdated.

Wednesday’s commissioner meeting is at 10 a.m. in the commissioners’ meeting room at the county courthouse.

The contract, which expires at the end of 2013, was handed down last month through binding arbitration, and commissioners must vote for the pay raises to take effect.

Flat-out rejecting the arbitration could backfire, county officials say.

County Solicitor Vito DeLuca said the county would have to prove fraud or a serious conflict of interest to overthrow the arbitration. If that failed, the county could be ordered to pay an additional estimated 6 percent interest and possibly union attorney fees.

Instead, commissioners plan to implement the first two years of the contract – 2009 and 2010 – but treat the remaining three years as “advisory,” commissioners said during Monday’s work session.

If commissioners determine a tax increase is needed to fund pay increases and other aspects of the arbitration award in the final three years, they have the right to argue the arbitration is more advisory and not required to be enacted, DeLuca said.

It’s too late to take that stand for 2009 and 2010 because money to cover the arbitration was factored into the 2010 budget, DeLuca said. Payment of the arbitration was a “significant part” of the county’s 15 percent 2010 tax increase, he said.

County officials estimate the arbitration will cost more than $750,000 for 2009 and 2010 $1.9 million to $2.1 million over the life of the contract.

Commissioners would decide during budget planning later this year whether they may fund the prison salary hikes without raising taxes, DeLuca said.

He warned commissioners Monday that the union may file a grievance.

“We are on new ground here. This is a novel legal approach, and no other county tried it before,” DeLuca said.

County union representative Tony Seiwell could not be reached for comment Monday afternoon.

All three commissioners – Maryanne Petrilla, Stephen A. Urban and Thomas Cooney – made it clear during the work session that they disagree with the arbitration award.

Urban blasted Ralph Colflesh, the neutral arbitrator, for waiting until February to release the award document more than six months after both sides had presented arguments. Urban said the arbitration document, which was several pages, could have been “typed up in an hour,” and some prison union representatives had started talking about what would be in the award in December.

Urban said he is researching which agency or association oversees arbitrators because he plans to file a complaint about Colflesh.

“I don’t want to ever see this guy in Luzerne County again,” Urban said. “He’s totally biased and one-sided, and has no concept of the county’s financial reality.”

Colflesh could not be reached for comment Monday.

The award gives correctional officers and support staff salary increases of 4 percent retroactive to July 1, 2009, and 3 percent for each year from 2010 to 2013. It affects 319 workers who are members of the Public Service Employee Union Local 1300.

The ruling means the top rate for a correctional officer (with eight years service) who works in the main facility will increase from the current rate of $48,107 to $56,310 in 2013. Other pay scales vary based on the positions.

Prison union workers will continue to receive full health benefits with no employee contribution until 2013, when the union workers start contributing $60 per month. Prison retirees also receive health care coverage until Medicare kicks in.

The county was forced to go to binding arbitration after contract negotiations reached an impasse. Prison employees, as public safety servants, are unable to strike.






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Tuesday March 16, 2010, 2:57:07 EDT


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