Angered workers will file lawsuit

Employees will file a suit challenging the Trammell Crow deal later this week. A group of University facilities managers alarmed by Penn's recent decision to outsource their positions expects to file a lawsuit against the University in federal court tomorrow. The suit would accuse the University of violating a federal law prohibiting employers from firing workers to avoid having to pay them benefits, according to Stephen Pennington, the Philadelphia attorney representing the employees. University spokesperson Ken Wildes did not return phone calls in reference to the suit. "It's our belief that the outsource is an attempt to avoid paying the pension and welfare benefits that these employees are entitled to under the pension and benefit plan," Pennington said. Pennington added that he expects to file a lawsuit tomorrow in U.S. District Court in Philadelphia seeking class-action status. The move would allow the suit to represent all the affected Penn employees. The employees hope to get a temporary restraining order blocking the deal, Pennington said. Under an October 8 agreement, Trammell Crow Co. will take over management of all University buildings as of March 18. University Trustees are expected to approve the final version of the agreement at their November 7 meeting. The affected University employees have to apply and interview with Trammell Crow in order to be eligible for the new jobs. Only about 75 percent of the University employees are expected to be offered new jobs, officials said. For those employees who do maintain their jobs, University Executive Vice President John Fry yesterday clarified how the tuition reimbursement policy will change. Employees' spouses will lose their tuition benefits after next spring, he said. But children's benefits will be extended indefinitely -- past the spring cutoff date set when the deal was announced -- at a cost of $4 to $5 million to the University, Fry said. Regardless of the benefits situation, many employees are angry that administrators didn't consult them while the deal was being negotiated. The employees' legal challenge falls under the Employee Retirement Income Security Act of 1974, a complex law that governs employee benefit plans. The University employees' case is similar to one that came before the the U.S. Supreme Court last May, Pennington said. In that case, Inter-Modal Rail Employees Association v. Atchison, Topeka and Santa Fe Railway, the court unanimously ruled that employers couldn't fire workers in order to lower the cost of their benefit plans. Employees rehired by Trammell Crow would have health and pension benefits plans that differ from these offered by the University. But Trammell Crow officials have emphasized that the benefits will be similar to Penn's plans

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