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Governor blocked from hiking health costs

07:32 AM EDT on Wednesday, August 27, 2008

By Steve Peoples

Journal State House Bureau

Carcieri

PROVIDENCE –– A Superior Court judge has explicitly blocked Governor Carcieri from forcing higher health-care costs on nearly 5,000 unionized state workers.

But the battle between the Republican governor and the largest state employees union is far from over.

Judge Patricia Hurst released a “supplemental decision” yesterday clarifying a complex ruling six days earlier that confused both the Republican governor’s administration and Council 94, American Federation of State, County and Municipal Employees, which represents about one-third of Rhode Island government’s work force.

But yesterday’s ruling was not ambiguous.

The decision was “aimed at putting to rest any notion that the governor may act unilaterally…,” Hurst wrote in a 10-page ruling, offering a sharp rebuke to Carcieri, who had as recently as Monday reiterated plans to force higher benefit costs on 4,842 state employees beginning with their Sept. 5 paychecks.

Hurst specifically barred such action.

“He cannot implement an executive order increasing Council 94’s health-care deductions if doing so runs afoul of the law — as it would under the present circumstances,” Hurst wrote. “The governor is subject to all of the laws of this state that govern collective-bargaining disputes, and his executive powers neither supersede them, transcend them, nor trump them in whole or in part.”

Hurst ordered the governor to follow the steps outlined in state law that address failed contract negotiations. Specifically, she ordered the case to the Rhode Island State Labor Relations Board to begin the process of “mediation, conciliation and arbitration.”

An “outraged” Carcieri immediately appealed the ruling to the state Supreme Court, which has scheduled a conference for today, the governor said as he left his State House office yesterday afternoon.

Hurst’s decision would delay the implementation of reduced benefits worth roughly $10 million in taxpayer savings that Carcieri needs to help balance the current state budget.

“We’ve got to do the best thing we can do for our citizens and I wish we didn’t have to go through the courts to do this,” the governor said, characterizing Hurst’s decision as an “outrageous” reversal of last week’s ruling.

“A week ago it was one thing. Now she completely changes her mind,” Carcieri said. “I think that’s just ridiculous. I think she’s way overstepped her authority here.”

Specifically, Hurst ordered both sides to appear before the State Labor Relations Board and to report on progress every two weeks.

In a written statement issued by his office with the headline “Governor Outraged by Judge Hurst’s Decision,” Carcieri clarified his position: “This latest decision by Judge Hurst attempts to usurp the authority of the office of the governor and flagrantly disregards separation of powers. The judge has no authority to negotiate for the unions and has no authority to mandate that my office report to her on issues before the state’s labor relations board.”

The State Labor Relations Board is a seven-member autonomous panel housed within the state Department of Labor and Training. Three of the seven members represent labor unions, while there are also three management representatives and a public member.

The board has already outlined a schedule to review the case, according to administrator Robyn H. Golden, noting that an informal hearing set for Sept. 10 has been canceled.

In lieu of the hearing, written statements are due Friday and subsequent written responses are due Sept. 5.

Golden said yesterday that the board would officially decide whether to pursue unfair labor practice charges against the administration at its regularly scheduled meeting on Sept. 16. It’s unclear whether and when the board would appoint a conciliator to help negotiate a new contract, Golden said.

Council 94 President Michael Downey said he welcomed any move toward a resumption of negotiations, as outlined in Hurst’s order.

The governor has consistently refused to return to the bargaining table since Council 94 members and a handful of smaller unions voted last month to reject a tentative four-year contract brokered by union leaders and the administration.

“We are elated that Judge Hurst has proven that collective bargaining is alive and well in Rhode Island,” Downey said yesterday. “All these court proceedings, they favor us, but our end result is to get a contract. And the fairest and most equitable way to do that is to return to the bargaining table.”

But yesterday, the governor rebelled against the idea, vowing to pursue a court fight.

He dismissed a question about the mounting legal costs. “This is a small amount of money in the whole scheme of things,” Carcieri said.

In addition to asking the Supreme Court to “stay,” or block, Hurst’s ruling, the governor’s office plans to ask the high court to secure a bond “for the monies that would have been collected” through the increased health-care fees. The new fee structure was supposed to be in place at the beginning of last month, according to the state budget.

“That’s unheard of, in my opinion,” Downey said.

The governor yesterday also reiterated the potential for other “personnel cost saving measures” that may include further layoffs or forced unpaid work days.

“All of that’s possible,” Carcieri said. “We’ve got other steps we’ll have to take. We’ve got to save the money.”

speoples@projo.com