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January 13, 2015

Union Files Labor Complaint Over Calif. Hospitals' Sale

A union representing California health-care workers has filed a National Labor Relations Board complaint alleging that Daughters of Charity Health System is bullying employees into backing the nonprofit chain's takeover by a for-profit firm, Silicon Valley Business Journal writes.

Service Employees International Union cites what it says are threats by Daughters of Charity CEO Robert Issai that the six hospitals in the Los Angeles and San Francisco Bay areas will close and jobs will be lost if the planned sale to Prime Healthcare does not go through. The union opposes the sale, contending that Prime raises prices and slashes staffs at hospitals it purchases.

The deal, which must be approved by California's attorney general, is supported by other labor groups representing Daughters of Charity nurses. Elizabeth Nikels, a spokeswoman for the Catholic medical network, said it is only representing the facts to employees. The six hospitals "have limited cash on hand and are in danger of bankruptcy or shutting down if the sale to Prime is denied," she said.