A judge halted an arbitration sought by the union for 12 former employees of the Scranton Parking Authority because the union did not first get court permission to pursue the arbitration.
In a ruling issued May 30, Lackawanna County Court Judge Vito Geroulo stated Teamsters Local 229 pursued arbitration outside of a court-appointed receivership of SPA's estate but should have first sought court permission. He stressed his decision does not permanently bar arbitration, but rather requires the union to first obtain court permission to pursue it.
Because the employees' contract with SPA states the pact is binding on any SPA "successors, administrators, executors and assigns," another question was whether the receivership is the collective-bargaining successor of SPA. The judge said no, because the receiver was not a party to the labor contract.
"We're very pleased with the ruling," receivership attorney Jennifer LaPorta Baker said.
Teamsters attorney Thomas Jennings said, "I respect the decision and I respectfully disagree with the decision." He said he and the union now will consider whether to appeal.
The case stems from the SPA's dismantling that began with city council allowing SPA to default on June 1, 2012. SPA's bond trustee sought and received on Aug. 14 appointment of a receiver, Mike Washo, to oversee SPA's estate of five parking garages, and he took over on Sept. 11.
The employees were then furloughed in September by SPA because it no longer had control or revenue. Six parking-garage maintenance employees lost their jobs while six parking-meter employees have remained employed under job transfers, first to the city and then to a private firm managing the meters. Grievances claimed the furloughs violated the labor contract and sought back wages/benefits and, in the case of garage workers, restoration of jobs.
In December, Mr. Jennings put the receiver on notice of the grievances and an arbitration hearing was later set for March 13. However, Mr. Washo objected that the arbitration could result in binding the receivership to pay damages to the workers. The judge on March 11 issued a temporary injunction stopping the arbitration and held a hearing on March 20 to determine if the injunction should be extended.
The May 30 ruling extends the injunction indefinitely, until the union obtains court permission to proceed to arbitration.
Meanwhile, the union recently filed a separate grievance against the city that seeks to extend the labor contract to the city, Mr. Jennings said. That grievance has not yet been heard.
Contact the writer: jlockwood@timesshamrock.com, @jlockwoodTT on Twitter.