After ending strike without success, Cedar Haven employees end unionized bargaining

Just weeks after unconditionally ending its six-month strike, Cedar Haven employees have decided their contracts will no longer be negotiated by a union.

The strike ended in early April without public acknowledgement. However, on April 3 the unionized employees made an unconditional offer of return to work, according to a letter Cedar Haven owner Chas Blalack of Stone Barn Holdings sent to employees. A copy of that letter has been obtained by the Lebanon Daily News.

Employees were allowed to return to work, but without a new contract and under terms of the ownership’s “Last, Best, and Final Offer” that the union had rejected last fall, the letter states. That offer substantially increased employee health insurance costs and reduced paid time off for employees.

Background: Two months in: When will the Cedar Haven strike end?

Cedar Haven hired permanent replacement employees during the strike, so employees who belong to the union will only get their jobs back immediately if there are vacancies in their department, according to the letter. However, employees in departments without vacancies “will be added to a preferential hiring list and may return to work as positions become available.”

On Monday, Cedar Haven posted a Facebook message announcing that a majority of Cedar Haven bargaining union employees signed a petition stating they no longer wish to be represented by the American Federation of State, County and Municipal Employees.

“Based on the wishes of a majority of employees as evidenced by the petition, Cedar Haven has notified AFSCME that it is has withdrawn recognition of AFSCME as your bargaining representative and is ceasing bargaining with AFSCME,” the Facebook message states.

AFSCME Council Director Steve Mullen said the union does not have any comment. Blalack did not return a phone call and an email requesting comment.

Cedar Haven used to be the county-owned nursing home, but county commissioners sold it due to financial concerns in 2014 over the objections of Commissioner Jo Ellen Litz.

More: Handpicked Cedar Haven owner lost control within months, to county's surprise

Employees began striking in October 2017 when Cedar Haven’s private ownership implemented a new contract even though it was rejected by the union. Picket lines outside of the nursing home initially displayed enthusiasm for the strike, but the level of support gradually dwindled.

Cedar Haven ownership ultimately outlasted the striking employees, but Blalack told employees the victory did not come without costs.

The strike cost Cedar Haven more than $4 million, largely for the cost of replacement staff, according to Blalack's letter to employees. It also caused “reputational damage” – so much so that the number of residents living at Cedar Haven “significantly decreased,” causing the home to lose revenue.

“It will take Cedar Have years to financially recover from the effects of the Union-led strike,” Blalack wrote in the letter. “However, even with these economic challenges, we are confident that Cedar Haven will recover, grow, and prosper.”

While the union did not agree to return to work until April, another front in its fight with Cedar Haven ownership had already been wrapped up in February.

The parties settled a National Labor Relations Board case in which the union had alleged the nursing home engaged in an unfair labor practice by implementing the new contract over its objections.

According to a Feb. 15 notice to employees written by Cedar Haven management and obtained by the Lebanon Daily News, Cedar Haven agreed in the settlement that it will not interfere with employee rights under the National Labor Relations Act. It also will not suspend Friday dress-down days or require employees to provide a doctor’s note for every absence.