NEWARK, NJ-A federal bankruptcy judge has ruled in favor of a Fort-Lee based nursing home owner saying it can modify unionized worker contracts so that it can remain in business.
U.S. District Court Judge Donald H. Steckroth, granted THCI Co. and THCI Mortgage Holding Co., owners of five Connecticut nursing homes, approval to change the collective-bargaining agreements reached with employee labor unions for six weeks. Judge Steckroth said, "there can be no debate" that modifications are essential to continue the businesses and "to avoid irreparable damage to the estate,” according to The Record.
Four of the nursing homes, each operating as a separate company owned by THCI Co., and the fifth home, owned by THCI Mortgage Holding Co., filed for Chapter 11 bankruptcy protection in New Jersey on Feb. 24.
The nursing home ownership has been in a dispute with the Service Employees International Union over wages and working conditions. The companies claimed in their bankruptcy filings that they would not be viable unless their contracts with unionized workers were modified. See story in The Record.
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