U. issues response in Trammell Crow suit

The University has denied accusations that it illegally conspired with Trammell Crow Co. to deprive employees of benefit packages, according to court documents filed last month in a lawsuit threatening to derail Penn's attempt to outsource its facilities management. Three University employees and one of their spouses sued Penn and Trammell Crow in U.S. District Court, two weeks after the October announcement that the Dallas-based company will take over management of most on- and off-campus buildings under a 10-year agreement with Penn. The transition is set to take effect April 1. Trammell Crow has also filed a motion to have itself dismissed from the lawsuit. No trial date has been set yet, as the case remains in the early stages. "The University has worked very, very hard to make certain that the employees who were hired by Trammell Crow are not disadvantaged," Penn spokesperson Ken Wildes said. The employees' attorneys are hoping the suit will be given class action status, enabling the plaintiffs to represent all 160 employees affected by the deal. Trammell Crow has offered jobs to about 122 employees, or 81 percent of those who applied. The company was required to hire at least 70 percent. Officials have estimated that the deal will save the University between five and 15 percent on facilities management costs, which totaled about $100 million this year. The lawsuit argues that the University and Trammell Crow wanted to avoid providing employees with benefits such as vacation days and tuition reimbursement. Additionally, the suit says the defendants wanted to implement reductions in pension and health coverage. Attorney Stephen Pennington, who is representing the plaintiffs -- Richard Cipollone, Lisa Karnincic, Donald Calcagni and Linda Calcagni -- did not return repeated calls for comment yesterday. The University's nine-page response, filed December 23, says that Penn outsourced its facilities management to Trammell Crow to "effect legitimate and fundamental business objectives, and has gone to extraordinary lengths to protect the affected workers." The document goes on to say that employees retained by Trammell Crow will receive the same salary they received from Penn. Employees will also continue to receive tuition reimbursement for their children, extended health benefits and access to Penn facilities such as the gymnasiums and libraries. Also, employees not staying with Penn will get severance packages. The reply did not dispute the fact that spouses of employees will lose their tuition benefits. Wildes said University officials are not concerned that the lawsuit will delay Trammell Crow's scheduled take-over date of April 1. Many members of the University community have accused the administration of failing to sufficiently consult them before signing a letter of intent with the company.

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