Union: Diocese owes ex-teachers $1M Church leaders unsure how to pay severance, accumulated sick leave
The following article appeared in the Scranton Times Tribune, December 12, 2008:
Union: Diocese owes ex-teachers $1M Church leaders unsure how to pay severance, accumulated sick leave
The Diocese of Scranton owes former teachers almost $1 million in arbitration awards for accumulated sick leave and severance pay, according to the teachers union president.
But teachers have not received any of that money yet, said Michael Milz, president of the Scranton Diocese Association of Catholic Teachers — the union the diocese refuses to recognize.
“In essence, they (the diocese) are deadbeats,” Mr. Milz said.
The diocese responded to the charge Thursday with a written statement, saying it intends to honor the awards but is not sure where the money would come from. It did not elaborate on the diocese’s financial condition.
Diocesan operations produced net income of $1.37 million in the fiscal year ending June 30, 2007 (the most recent disclosed publicly). However, the balance sheet showed the net value of assets shrinking under the long-term burdens of struggling parishes and unfunded pension obligations.
Because of its financial trend, the 11-county diocese has been evaluating its 224 parishes for a large restructuring plan that will consolidate and close churches.
These new bills are for arbitration awards to teachers who were laid off when the diocese restructured its school systems in 2007. Many schools did not honor contracts with their employees who were laid off, including clauses on severance pay, Mr. Milz said.In the last few months, several arbitration awards have been announced. Teachers are set to receive payments ranging from a couple-hundred dollars to $40,000, based on their years with the diocese, Mr. Milz said.
The total amount owed by the diocese, including legal fees, may rise to $2 million when all cases are decided, Mr. Milz said.
Mr. Milz said he has not received word from the diocese as to when teachers will receive what they’re due. He said the union soon will file lawsuits seeking to enforce the binding arbitration.
“You have to take them to court and force them to pay,” he said.
The diocesan statement says the union is having a “detrimental impact” on Catholic education.
“These arbitration awards were the result of contract language with SDACT that created great economic hardship for the parishes and Boards of Pastors that formerly operated Catholic schools,” the statement read. “These awards demonstrate why the Diocese of Scranton could never afford to return to a system that permits such exorbitant benefits — benefits that parishes would never be able to pay.
”Most of the contracts called for grievances to be heard by the American Arbitration Association. After the decisions, any payments were to be started immediately, Mr. Milz said.
An arbitration decision from September called for the diocese to immediately begin paying out $725,000 to 40 teachers from the former Bishop Hoban High School, according to Mr. Milz. No payments have been made, he said.
Rulings for Bishop O’Reilly Senior High and Bishop O’Reilly Junior High in Kingston, Bishop Neumann High School in Williamsport and St. Vincent’s Elementary School in Honesdale were recently announced. The total severance pay and payment for unused sick days will cost the diocese about $236,000 for those cases, Mr. Milz said.
A decision on the case from Bishop Hafey High School is expected before Christmas.
Other cases, including those at Wyoming Area Catholic, St. Aloysius, St. Jude and St. Paul schools, will be heard when an arbitrator is mutually chosen by the diocese and union, Mr. Milz said.
After each decision was announced, an attorney for the union sent a letter to the diocese. No response was ever given, Mr. Milz said.
The lack of payments has made teachers “eager and angry,” he added. “None of it makes sense, but nothing they’ve basically done in the year makes sense.”
At three schools — formerly Bishop O’Hara High School, Seton Catholic High School and St. Nicholas/St. Mary’s School — the employers agreed to pay their teachers the benefits promised by their contracts before hearings, Mr. Milz said.
In its statement, the diocese said it has already paid $6,600 for teachers at the former Bishop O’Hara High School and approximately $31,000 for teachers at St. Nicholas/St. Mary School. Teachers at Bishop Neumann have been given the option of carrying over sick days into the new system, so any amount owed to them will depend on what they choose to do, according to the diocese.
Union: Diocese owes ex-teachers $1M Church leaders unsure how to pay severance, accumulated sick leave
The Diocese of Scranton owes former teachers almost $1 million in arbitration awards for accumulated sick leave and severance pay, according to the teachers union president.
But teachers have not received any of that money yet, said Michael Milz, president of the Scranton Diocese Association of Catholic Teachers — the union the diocese refuses to recognize.
“In essence, they (the diocese) are deadbeats,” Mr. Milz said.
The diocese responded to the charge Thursday with a written statement, saying it intends to honor the awards but is not sure where the money would come from. It did not elaborate on the diocese’s financial condition.
Diocesan operations produced net income of $1.37 million in the fiscal year ending June 30, 2007 (the most recent disclosed publicly). However, the balance sheet showed the net value of assets shrinking under the long-term burdens of struggling parishes and unfunded pension obligations.
Because of its financial trend, the 11-county diocese has been evaluating its 224 parishes for a large restructuring plan that will consolidate and close churches.
These new bills are for arbitration awards to teachers who were laid off when the diocese restructured its school systems in 2007. Many schools did not honor contracts with their employees who were laid off, including clauses on severance pay, Mr. Milz said.In the last few months, several arbitration awards have been announced. Teachers are set to receive payments ranging from a couple-hundred dollars to $40,000, based on their years with the diocese, Mr. Milz said.
The total amount owed by the diocese, including legal fees, may rise to $2 million when all cases are decided, Mr. Milz said.
Mr. Milz said he has not received word from the diocese as to when teachers will receive what they’re due. He said the union soon will file lawsuits seeking to enforce the binding arbitration.
“You have to take them to court and force them to pay,” he said.
The diocesan statement says the union is having a “detrimental impact” on Catholic education.
“These arbitration awards were the result of contract language with SDACT that created great economic hardship for the parishes and Boards of Pastors that formerly operated Catholic schools,” the statement read. “These awards demonstrate why the Diocese of Scranton could never afford to return to a system that permits such exorbitant benefits — benefits that parishes would never be able to pay.
”Most of the contracts called for grievances to be heard by the American Arbitration Association. After the decisions, any payments were to be started immediately, Mr. Milz said.
An arbitration decision from September called for the diocese to immediately begin paying out $725,000 to 40 teachers from the former Bishop Hoban High School, according to Mr. Milz. No payments have been made, he said.
Rulings for Bishop O’Reilly Senior High and Bishop O’Reilly Junior High in Kingston, Bishop Neumann High School in Williamsport and St. Vincent’s Elementary School in Honesdale were recently announced. The total severance pay and payment for unused sick days will cost the diocese about $236,000 for those cases, Mr. Milz said.
A decision on the case from Bishop Hafey High School is expected before Christmas.
Other cases, including those at Wyoming Area Catholic, St. Aloysius, St. Jude and St. Paul schools, will be heard when an arbitrator is mutually chosen by the diocese and union, Mr. Milz said.
After each decision was announced, an attorney for the union sent a letter to the diocese. No response was ever given, Mr. Milz said.
The lack of payments has made teachers “eager and angry,” he added. “None of it makes sense, but nothing they’ve basically done in the year makes sense.”
At three schools — formerly Bishop O’Hara High School, Seton Catholic High School and St. Nicholas/St. Mary’s School — the employers agreed to pay their teachers the benefits promised by their contracts before hearings, Mr. Milz said.
In its statement, the diocese said it has already paid $6,600 for teachers at the former Bishop O’Hara High School and approximately $31,000 for teachers at St. Nicholas/St. Mary School. Teachers at Bishop Neumann have been given the option of carrying over sick days into the new system, so any amount owed to them will depend on what they choose to do, according to the diocese.
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