Local 5186 Update: Bankruptcy: What We Know And What We Can Do
What We Know: CarePoint has filed for Chapter 11 bankruptcy. This is part of CarePoint’s restructuring to become part of Hudson Health. HPAE has hired an experienced bankruptcy attorney to represent our members in Bankruptcy Court. Our union will do everything possible to make sure ALL members get wat we deserve!
Currently CarePoint’s restructuring plan is to
- Create a shared company called “Hudson Health” with Hudson Regional (HRH). It will be over all four hospitals.
- HRH will own and manage Hudson Regional and BMC. CarePoint will own Christ and Hoboken, under HRH management.
- Declare bankruptcy to restructure its debts.
Why This is Happening: CarePoint’s previous owners took out hundreds of millions of dollars, instead of investing in us and our hospitals.
What is Chapter 11 Bankruptcy? Chapter 11 Bankruptcy allows the hospitals to:
- Maintain services and staff to protect the health of our patients and our community;
- Conduct “business as usual”;
- Pay its vendors, employees and other creditors in a fair and orderly way.
What are my rights during bankruptcy? During Bankruptcy our contract is in full force. All provisions of our contract are still in effect. The hospital must follow the contract in all matters, including granting PTO, providing health insurance, discipline, and lay-off.
Will There be Layoffs? Possibly but unlikely. CarePoint has sent a WARN notice to all employees. This lets them go forward with layoffs if they choose to, but does not REQUIRE them to. Our contract requires 30 days’ notice of layoffs. Our Unions demand is NO Layoffs!
What Can WE Do? We are strong when we stand together! The State has the final say, so our Union is demanding it put conditions on Hudson Regional.
- SIGN our Petition, and share it with everyone you know: https://actionnetwork.org/petitions/take-action-to-protect-hudson-county-hospitals/
- STAY up-to-date: This is a complex situation that can change quickly, We will be sending out updates as we get more information. Keep reading and listening and be prepared to show up to take action!
See our President Debbie White’s letter to the NJ Department Of Health.
In Solidarity,
HPAE Local 5186 Executive Board