By MaryHelen Swanson

Healthcare workers at Green Acres Country Care Center in North Branch, members of Service Employees International Union (SEIU) Local 113, voted Feb. 24 to authorize a strike.

That does not mean there is going to be a strike, but the negotiating committee is now free to file at any time a 10-day notice of intent to strike.

Eight-nine percent of the 85 workers in the union, including licensed practical nurses, nursing assistants, housekeeping, laundry and dietary workers, voted for the authorization, as noted in a press release from SEIU Feb. 25.
The workers have been on the job with out a contract since June 30, 2004.

Lance Lindeman, business representative for the union, told the Post Review that the employees would like to make a living wage.
He said they feel that Ecumen, the operator of the health care center, has gotten a good deal from Chisago County with lease payments of $15,000 a month waived for over a year and in signing a purchase agreement for the Green Acres facility.
In the agreement, Ecumen only pays $1 for the property and current facility.

The employees understand, Lindeman said, that the value of the center is over $2 million.

Rick Varco, director of communications and research for the union, said in the press release that the union members voted down a management contract that included no wage increase and provided one-time bonuses of between $10 and $125.
The last pay increase, he noted, was for 5 cents in January of 2003.

The employees contend that while Ecumen gets financial assistance from the county, none of it winds up in the hands of local residents who live and work at Green Acres.

Lindeman said the union and Ecumen have met several times and the union's three basic issues are: wage increase, health insurance par with management and making sure the workers will have jobs in the new facility.
Lindeman said the employees are in favor of a new facility, but there's no recognition of the people who are keeping Green Acres running.

Lindeman said the employees feel Ecumen should pass some of the good fortune around to those who have taken a real hit and have kept the place running for the past two years.

It's difficult for them, Lindeman said, when they see the big corporation getting a hand out from the county.
Some of it should come back to the people, he said.

Lindeman also said the employees are being asked to do more work in less time. The "core" group of workers, he said, really care about the people, they have the closest contact to them.

The workers would like to have time to spend with each person, but now they hardly have time to get their routine work done.
Lindeman said the union feels Ecumen should recognize the employees for helping them through some tough times.

He also said some members of the union have attended the county board meetings and can understand why the county wants to get out of the nursing home business.

Varco said the employees are facing a lot of challenges and it would be good to have the peace of mind that they'll have, in writing, jobs at the new facility.

It makes them nervous, he said, that it might not be in writing.

The Ecumen side

Eric Schubert, director of communications at Ecumen and David Zwickey, director of campus operations for Ecumen, both talked with the Post Review this week.

Regarding the consequences of a strike, Zwickey said everyone is working very hard to see that it won't come to pass.
In terms of negotiations, he said "We have not come to an impasse."

He said they are still in active negotiations with the union, but that they are in contingency planning in the event of a strike.
The greatest focus now, he said, is on how we can reach an agreement.

The past two years have been rough, he noted. It is the second year of a Medicaid rate freeze for nursing homes.
And, there has been a pretty significant decline in the numbers of residents. In 2003, he said, the average was 122, in 2004 it was in the low 90s.

Currently the number is around 82. Green Acres, he said, was a 135-bed facility.
The decline in residents had a significant impact on the bottom line.

Zwickey said in 2004 GACCC lost $280,00 net after donations and due to the fluctuation in market value, based on just over 90 residents. There was an operating loss of $381,000.

In 2003, he said, the net loss was $45,000 and operations loss was $132,000 with 109 average residents.

In 2002, he noted, they broke even with an average of 122 residents.
The point is, he went on, it's been a very challenging year.

With the decline in census and the second year of the rate freeze, there wasn't extra money.
But there is good news, he went on. Governor Tim Pawlenty has included a 3 percent increase for nursing facilities beginning July 2005.

There might also be special legislation for Chisago County to be reimbursed further for nursing facilities. He said Rep. Pete Nelson and Sen. Sean Nienow have been going to bat for the nursing home.

Zwickey said there is a big picture here, a new elder care campus that will provide a number of housing options much like Parmly in southern Chisago County, which is doing well.

If that comes to reality, he said, it will be good for the citizens and good for the employees.
Everybody has the best interest of the residents and employees in mind, he said.
He said he was confident that they would be able to come to an agreement.

Regarding the "windfall" issue, he said the current property is appraised at $2.8 million before clearing of the land. The net value of the land for development, he said is probably not much over $2 million.

Ecumen is currently soliciting proposals with developers, he said. He doesn't believe there will be any windfall.
The question, he said, is if Ecumen can get enough from the land for equity to proceed with the new facility.

He was highly optimistic that Ecumen would receive HUD assistance. Ground needs to be broken this fall in accordance with the nursing home moratorium agreement, he noted.

Will the employees continue at the new facility? Zwickey said there would be 138 units (of various types of housing) in the new campus. He said he would expect that all employees would be moving there.

But he also said that if they can't begin construction of the nursing home replacement this year, the future is uncertain.
Zwickey also noted that the proposal that was rejected by the union members was a proposal their leadership brought to Ecumen.

Both Ecumen and SEIU Local 113 noted that another negotiation meeting has not been scheduled yet.

The union has not filed the 10-day notice.

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