Order seeks to allow union cases from being stayed under Puerto Rico oversight law
SAN JUAN – Puerto Rico’s Fiscal Agency and Financial Advisory Authority (Aafaf by its Spanish acronym) has issued an administrative order to modify the automatic stay on claims under the federal Promesa law to allow certain complaints and grievances filed by five unions under collective agreements to continue their course.
Since July 28, 2017, the International Union; the United Automobile, Aerospace and Agricultural Implement Workers of America, AFLCIO (UAW); the Service Employees International Union (SEIU), the American Federation of State, County and Municipal Employees International Union, AFL-CIO (AFSCME); and the American Federation of Teachers, AFL-CIO (AFT) have been in talks with the government, seeking to continue the grievance procedures related to events that occurred before May 3, 2017, when the commonwealth filed for bankruptcy under Title III of Promesa.
According to the April 2 administrative order, the government signed a stipulation with the AFL-CIO and the American Federation of Teachers on March 6 to partially modify the automatic stay under Promesa in certain cases. The UAW and the SEIU did not accept the stipulation but agreed to follow its terms temporarily.
Puerto Rico bankruptcy: Judge to hear union pension concerns separately
The administrative order establishes a protocol to identify cases that may continue their course. It also establishes that agencies and departments must identify cases of employees represented by unions that have been presented in claims, grievances and arbitration procedures of the collective bargaining agreements, to separate those whose cause of action occurred before May 3, 2017.
Claims or grievances that relate to conduct that occurred after May 3, 2017, will not be subject to the stay on litigation or the administrative order, thus can continue their course.
Cases or claims involving events that occurred before May 3 will be subject to the automatic stay but the administrative order establishes an “automatic exception” to allow some to continue their course. The exception covers cases that challenge the constitutionality of a law essential to the implementation of the government’s fiscal plan; procedures whose final remedy prevents or is inconsistent with any law essential to the implementation of the fiscal plan; and cases in which a requested injunction prevents or contravenes the implementation of public policy or the administrative duties of departments. The exception does not cover injunctions aimed at reinstating public officials or employees.
However, cases of events that occurred before May 3, 2017, that involve only warnings, disciplinary suspensions or dismissals and disciplinary dismissals will not be subject to the Promesa stay.
The order establishes criteria for agencies to identify cases that would be stayed and include those that challenge the classification of employees, that affect more than five employees or that pursue a monetary compensation of more than $200,000.
Cases involving events that occurred before the aforementioned date will be subject to the stay after Aafaf notifies the unions, agencies and departments via a process established in the administrative order.
Being Vigilant of the 7 Benchmarks to end 2022
We are just about to end the fourth quarter of...
- Posted November 22, 2022
Inflation Heading Down, What Happens Now?
The Four Benchmarks to review that confirm inflation may be...
- Posted November 14, 2022
The Six Factors to Expect during the end of 4Q22
We are deep within the fourth quarter we thought it...
- Posted November 10, 2022
Puerto Rico Banks Deliver strong earnings, beating most banks
Puerto Rico Banks Transformed their operational model The Puerto Rico...
- Posted November 9, 2022
US Congress Discrimination affecting the Puerto Rico’s Healthcare Ecosystem
The market dynamics that changed the Healthcare Ecosystem as we...
- Posted November 8, 2022
MCS contributes over $5 million to support member healthcare
The insurer distributed the amount among 409 community pharmacies in...
- Posted November 7, 2022
Droguería Betances Launches 60th Anniversary Ad Campaign
Droguería Betances has launched a new advertising campaign, “60 Reasons...
- Posted October 31, 2022
Puerto Rico Food Industry Helps Communities in Aftermath of Hurricane Fiona
Over three-quarters of a million dollars in aid to...
- October 24, 2022
Medplus Solutions celebrates 10 years Saving Lives
Innovation and continuous growth Expansion of specialized and more...
- May 18, 2022
Amazon Web Services Expands Operations in Puerto Rico
Local Office Will Offer Services to other Caribbean Islands...
- April 22, 2022
García Padilla: Rubio Is No Friend of Puerto Rico
Governor Says Rubio's Remarks Confirm he Works for 'Vultures'
- February 26, 2016
Why the plebiscite was a disaster
A column by A. W. Maldonado
- June 16, 2017
[Annotation] The People Have Spoken
By abstaining, you can’t express anything
- June 15, 2017
You must be logged in to post a comment Login