Friday, September 26, 2008

Orange Regional Medical Center Project Heads To Trial

A judge has denied a motion by Orange Regional Medical Center to dismiss a lawsuit filed by IBEW Local 363 alleging the hospital violated terms of a state grant by not paying the prevailing rate for electricians on its new hospital construction project.

The ruling by Orange County Supreme Court Judge Elaine Slobod restrained the hospital from proceeding with electrical work on the project until the matter is resolved. The hearing date is set for October 7, 2008.

Orange Regional Medical Center accepted millions of dollars to help finanace their new $306 million dollar construction project. The grants they accepted, according to the law, call for the recipient to use the local prevailing wages to build the project. The hospital contends that the grant would make only a portion of the project prevailing rate and felt that they could unilaterally decide where, when and to which trade they would apply the law. This spurred the lawsuit from IBEW Local 363. The hospital petitioned to dismiss the case and lost. This ruling now sends this entire case to trial where the hospital will be asked to account for and show the court where the grant money was spent and whether contracts were given out in deference to the law.


Anonymous said...

Wait until the trial starts - I hear that they spent money in a few directions that had nothing to do with the building. This should be good.

Anonymous said...

Thank God that the unions are watching the corporate hacks with their hands in million dollar cookie jars. Don't think what you see going on all over the country with these big shots isn't happening right here in the Hudson Valley.

Jen said...

Great work from the IBEW 363. This funding is going out to medical facilities across the state and a favorable ruling will be precedent setting and protect the interests of many many thousands of workers.

Anonymous said...

You would think that the hospital would not just want to use local union labor but would require bids only from union contractors. Union contractors and their union employees are the ones that have heath plans that pay the bills that support that hospital and all the other hospitals in the hudson valley.