Union litigation could cost Josephine County $1 mil
Past board of commissioners charged with illegally dismissing more than 100 workers in 2006
From our weekly issue dated November 7, 2007
Financial bad news in the form of a ruling by the Oregon Board Of Employment Relations (ERB) was received last week by the Josephine County Board Of County Commissioners.
It’s a decision that could cost the county in the vicinity of $1 million. Litigation was filed by the American Federation Of State, County And Municipal Employees (AFSCME), the union representing county employees.
In a decision dated Oct. 30, ERB found that the board of county commissioners acted illegally when it decided in June 2006 to privatize the mental health functions of county government. These services include mental and emotional counseling and addiction treatment.
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On the county board at time were Jim Riddle, Dwight Ellis and Jim Raffenburg.
The county board Monday, Nov. 5 moved to request a stay from ERB and file a notice of appeal, said Dave Toler, commission vice chairman.
If the ruling stands, the county would be required to reinstate more than 100 former employees. The county also would be responsible for all back pay and any lost insurance or retirement benefits as well as a 9 percent interest charge on all money owed.
And the county would be responsible for reimbursing AFSCME for any lost union dues resulting from job terminations.
ERB also hit the county with a $1,000 fine, the highest allowed by current law. There is a 30-day window in the decision to allow the county to try and negotiate a settlement with AFSCME. The county has 14 days to appeal the decision.
Steve Rich, county counsel, said that ERB “really took the wood to us.” He stated that he is “almost certain” an appeal would be filed by Josephine County.
Rich added that the county faces an uphill battle in appeal because of the nature of the evidence against it -- specifically citing the “failure-to-recall” statement by the board.
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AFSCME contends that the privatization of county mental health services was of a retaliatory nature punishing the county mental health workers who strongly supported the 2006 county employees strike. Figures cited in the decision show that 80 percent of the county mental health workers supported the strike while only 40 percent of the public works employees agreed with the action.
Statements attributed to county officials also proved damaging to the county’s case.
Daniel Burdis, president of AFSCME Local 3694, claimed that he was told by Ken Granat, Josephine County Human Resources officer, that privatization would not have been an issue if not for the strike. Granat’s testimony that he had no recollection of such statements was found inadequate by ERB because Burdis had precise notes of the conversation.
The board further stated that such testimony “does not deny that the event occurred; it simply means that the witness cannot remember what happened.”
Mike Thor, who was chairman of the privatization Bargaining Committee for Local 3694, alleges that county Mental Health Director Joe Adair had made similar statements. Adair’s denials were discounted by the board and found to be “internally inconsistent and inconsistent with other documentary evidence.”
Perhaps most devastating to the county’s case is the fact that the county Mental Health Dept. actually brought money into the county budget. Because mental health services were are funded through state and federal money as well as grants, the surplus could be moved to the general operating budget.
It was brought to light during the hearing that the privatization actually cost the county nearly half a million dollars in funds at a time when the budget was in crisis due to the loss of federal timber funds.
