Forum rejects labor pacts

By Jon Moffett

The move was not prompted by recent criticism from creditors, Forum says.

YOUNGSTOWN — One day after agreeing to a concessionary contract with one of its unions, Forum Health announced that it would ask a federal judge to void two of its labor agreements.

Forum Health’s board of trustees has rejected proposed labor agreements with nurses at Northside Medical Center and members of the Service Employees International Union 1199 which would have saved the hospital system more than $4.4 million, officials said.

According to a news release issued by the hospital Thursday evening, the board turned down the proposals after trustees decided the contracts weren’t in the best interest of the hospital’s long-term financial plan.

Forum Health, which operates Northside Medical Center in Youngstown, Hillside Rehabilitation Hospital in Howland and Trumbull Memorial Hospital in Warren, filed for Chapter 11 bankruptcy protection in March. It has been reported the health-care system owes creditors about $139 million.

The release quoted Forum president and CEO Walter “Buzz” Pishkur, saying: “We were optimistic that we had come to an agreement with the union that would yield the best possible outcomes for our Health System. But after carefully reviewing the proposed timelines, it was not in Forum’s best long-term interest to move forward with the agreement. We have decided to let the courts intervene.”

Forum will ask the bankruptcy judge overseeing its bankruptcy to void the union contracts as soon as possible, said Trish Hrina, public relations director with Forum.

Hrina said the complications arose in part because of the length of the contract.

The agreement would have allowed the nurses-union concessions to expire after 18 months. She said the trustees wanted a two-year plan.

Representatives with the Ohio Nurses Association/Youngstown General Duty Nurses Association union said they were frustrated and confused with the news.

“It’s very disappointing and disheartening to have the board reject the agreement,” said YGDNA president Eric Williams.

“The nurses ratified what they felt was an agreement, which was approved. Why would [Forum] accept something they’d just reject?”

Officials with the SEIU were unavailable for comment.

Williams said the $4.4 million benchmark in concessions was met, and the length of the contract was never an issue during negotiations. He added that he believes this is the first he’s experienced a board rejecting a tentative agreement at this stage.

“I can’t respond to issues that weren’t raised,” he said.

Hrina said: “We felt this was a necessary step because we are not getting to where we need to be with our reorganization plan. This is just simply asking the court to intervene right now because of the time frame and because of our need to put these cost-saving measures into place.”

This decision comes shortly after Forum was criticized by its creditors, who said they have lost faith in the health-care system’s management and question financial trends.

Hrina said the decision to reject the agreement was a “completely separate issue” and the two have “nothing to do” with one another. Pishkur agreed, saying the two issues were “related, but separate.”

In the release, Pishkur said Forum wished to resolve the issues with the nurses union out of court, but time is running out.

“Our goal all along was to work this out among ourselves and not bring a third party into the process,” he said in the release. “But at the end of the day, we have to address the long-term viability of Northside Medical Center, and our financial obligations to our creditors and lenders. The time for indecision is over and we need to move forward.”

Pishkur and Hrina both said talks with the union will continue and a resolution is the ultimate goal. Pishkur said he remains optimistic and hopes the matter will be resolved quickly.

jmoffett@vindy.com