Change may cut 400 jobs in PBI takeover

Friday, January 19, 2007 By BETSY QUERNA HERALD NEWS

St. Mary's Hospital plans to lay off between 300 and 400 staff members when it takes over PBI Regional Medical Center at the end of February, according to documents filed by St. Mary's with the state.

About 1,500 people work at the two hospitals, according to the state documents, and St. Mary's anticipates that only 1,100 to 1,200 will be needed at the new hospital.

The actual number of employees let go may be less than the projected numbers, said St. Mary's executive vice president Robert Iannaccone since both hospitals have positions open.

"Our goal is not to lose people in this process," he said.

PBI filed for bankruptcy in July and put the hospital up for sale. In December, St. Mary's $36.7 million bid was accepted in court. The deal is scheduled to close and ownership of the hospital transferred on Feb. 28.

Iannaccone said the hospital doesn't yet know which departments will face layoffs, but that it is not likely to be in nursing or technician positions.

"Chances are we're going to need every single one of those techs and every single one of those nurses," he said. But, because of the consolidation, other types of job may be lost. "There's less space to clean," he said, hinting that some maintenance staff might not be needed.

PBI's interim CEO Bob Lyons sent all employees a letter at the end of December notifying them that they may be laid off. The letter is required by a federal law that compels employers to notify employees in the case of a closure or mass layoff.

"February 28, 2007 will be your last day of employment with PBI," the letter said.

On Jan. 12, St. Mary's CEO Patricia Peterson sent a letter to PBI employees informing them that some would be laid off. She attributed the layoffs to duplication of services at both locations that no longer would be needed and to a lack of money.

In the letter, Peterson called St. Mary's financial situation "precarious" and said St. Mary's employees had not been given a general wage increase in more than two years.

"St. Mary's will be significantly restricted in the wages and benefits it can provide to its new work force for the future," Peterson wrote.

Iannaccone said the hospital knew that it would have to pay its employees fair market value. "When you're competing for a nurse, you have to pay for that nurse," he said.

In her letter, Peterson also pleaded for help and understanding from employees to make the new hospital a success. "We view this move as a last best effort to provide acute health care services for the residents of Passaic....If we fail there will be no hospital."

At PBI, the mood among employees is "tense but hopeful," said Anne Rohe, a nurse and local union president. "Most people that I know are wanting to stay working at 350 Boulevard (PBI's address) and are hopeful that this will be successful."

One worry, she said, is that the new St. Mary's contract will not give those employees, who are not hired by the hospital layoff, pay, benefits, or some of the rights they would have in a typical layoff.

"Right now, people are hoping and expecting to hear something from the people who might be hiring them at St. Mary's."

Reach Betsy Querna at 973-569-7169 or querna@northjersey.com.