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Current Disposition of Severance and Unused Sick Day Reimbursement Arbitrations

September 21, 2007

    In April, 2007, we asked for arbitration on behalf of twelve of our union groups.  

     The issue in the arbitrations began when the union asked the old employers whether or not they would pay teachers their contractually-promised money for severance and unused sick days at the end of the 2007 school year, after which the employers would be out of business.  When the employers would not provide any response to that question, the union charged that an “anticipatory breach” of contract had occurred.

     The legal strategy for this approach was to forestall an argument by the employers that, had we waited for an actual breach to occur, there would be no “employer” to join us in arbitrating the dispute.  The concept, essentially, was to take our first shot while the old Boards were still in operation.

      In lieu of going to a hearing and presenting facts, legal counsel for both sides agreed to submit written briefs for decision in eight arbitrations with the American Arbitration Association, where four arbitrators were scheduled to make those decisions (four schools had procedures not using AAA and are now being processed in their alternative ways).

      Submitting these disputes at that time provided our attorneys with the opportunity to present our argument in two legal briefs on each matter, our initial brief and our reply to the employer’s brief. 

      To date, we have received decisions on two of the eight cases. So far, we’re 1 and 1, losing the brief submitted on behalf of St. Nick’s/St. Mary’s, and winning the one on behalf of Bishop Hoban.

      In the St. Nick’s case, the arbitrator simply rejected the notion of “anticipatory breach.”  He did not rule on the issue of whether an actual breach – the outright failure to pay the teachers - had occurred.

     Winning the Hoban one is great news.  This dispute involved the greatest amount of money, which first and foremost translates into leverage that could be used on behalf of all teachers. The arbitrator ruled that an anticipatory breach did occur, and a remedy is due.  Although it does not mean the fight might be completely over, the decision demands that the parties meet to discuss a remedy i.e., how and when the teachers might get what is due them. 

      No matter what decisions we receive on the remaining cases, the fight is not over.  If we lose on the remaining anticipatory breach cases, we will continue to process the actual breach of contract arbitrations which were submitted to AAA very recently.

      Many have asked, if we win all of these cases, can the employer appeal?  The answer is “Yes.”  They can go to court, but it is generally very difficult to have an arbitrator’s decision overturned.  The employer would have to prove that the arbitrator’s decision did not show a rational connection to the collective bargaining agreement.

      Finally, there exists the possibility that the Diocese might try to frustrate our rights and avoid the promises that have been made to us in the past through lengthy and arguably baseless litigation.  We are determined to join that fight if necessary, and I’m sure the Diocese’s decision to waste its limited resources on such a fight to deny wages plainly owed to its teachers will not escape public scrutiny.

 

 

 


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