Whenever you have union negotiated benefits with an employer, a company sale could have ramifications on their continued dispersal.
This issue came up recently when employees at a network of hospitals in California filed a lawsuit after the planned sale of the company was announced.
According to the Los Angeles Times, a lawsuit was filed in a federal court in San Francisco, seeking protection for thousands of pension plans for workers and retirees at six Daughters of Charity Health System hospitals, including the St. Vincent and St. Francis medical centers.
The newspaper reported that Prime Healthcare Services Inc. agreed to buy the hospitals in a deal announced earlier this month. In the announcement, Prime vowed to keep the hospitals open for at least five years, and said that it would assume almost $300 million in pension liabilities for 17,000 current employees and retirees of the hospitals.
The lawsuit, which is supported by the Service Employees International Union-United Healthcare Workers West, is seeking the guarantee of the benefits after the sale. Daughters of Charity responded to the lawsuit by saying that it plans to take “100 percent responsibility for all pension obligations for past and current Daughters of Charity employees.”
Attorneys for Prime said they expect to have the lawsuit dismissed.
What Should I Do If My Employer Denies Me Benefits?
In instances like this, it is expected that union representation will take care of any disagreements regarding employee benefits. However, if you are not a union member and are experiencing issues over benefits, you should contact our labor attorneys.
This includes instances when you have been denied benefits because of workplace discrimination. Additionally, if you have concerns about how the sale of a company will affect your employment, you should speak to a human resource representative at work.
Please contact our office for a free consultation.
Kesluk, Silverstein & Jacob– Los Angeles employment attorneys
Did You Know? In 2013, there were an estimated 2.4 million union members in California.