Press Release: AFSCME Wins Back Pay for Displaced Workers of Bankrupt Philipsburg General Hospital

AFSCME Wins Back Pay for Displaced Workers of Bankrupt Philipsburg General Hospital

Thursday November 30, 3:24 pm ET

PHILIPSBURG, Pa., Nov. 30 -- One-hundred sixty former employees of Philipsburg General Hospital, which declared bankruptcy in January and closed its doors in April, will have a little extra cash this holiday season, thanks to their labor union.

The American Federation of State, County, and Municipal Employees (AFSCME) District Council 83, which represents more than 8,000 employees in central Pennsylvania, filed several administrative claims in bankruptcy court immediately following the closure. The union today received a Court Order instructing the hospital to pay nearly $55,000 in "paid time off" (vacation, personal, sick, and holiday leave) that was due to the workers.

"This is a tremendous victory for our members," said Dominic Sgro, Director of District Council 83.

"This order covers leave that employees accrued after the bankruptcy claim was filed," said Alaine Williams, Esq. of Willig, Williams & Davidson, the union's law firm headquartered in Philadelphia. "All former employees should make sure that the hospital and the union are notified of address changes, because checks will be sent to their last known address."

Williams also notes that the union is pursuing approximately $184,000 for leave time that was accrued before the petition was filed. Such claims, called pre-petition claims, have a high priority in bankruptcy court, and Williams said the union is "cautiously optimistic" about the result.

Sgro held a rally and vigil for employees on the night the hospital closed, and promised that AFSCME would work to reopen the hospital and get their jobs back. "We're negotiating with the new owners right now. We'll fight until the end, both in the courts and at the bargaining table."

AFSCME Council 13 represents more than 65,000 employees of the state and its counties, townships, boroughs, cities, school districts and health and human service facilities.