Employees still worried as outsourcing deal rolls on

A judge dismissed a suit aimed at blocking the Trammell Crow deal. A federal judge this week dismissed an October 1997 lawsuit seeking to block Trammell Crow Co.'s scheduled April 1 management takeover of most University buildings, removing a potential barrier to the controversial outsourcing deal. On Tuesday, U.S. District Judge Ronald Buckwalter dismissed the suit against the University and Trammell Crow on the grounds that "the hardship plaintiffs allege has not yet become a reality." The dismissal, however, allows the possibility of another suit to be filed again after the takeover. Three University employees and one of their wives sued Penn and Trammell Crow two weeks after the October announcement that the Dallas-based real estate company would manage most on- and off-campus buildings under an unprecedented, 10-year agreement with Penn. The suit, which sought class-action status for all employees affected by the deal, alleged that the University and Trammell Crow conspired to avoid providing employees with benefits such as vacation days and tuition reimbursement. Additionally, the suit accused the defendants of wanting to implement reductions in pensions and health coverage. Such a move would be a violation of the federal Employee Retirement Income Security Act, which regulates employment benefits. Buckwalter, however, ruled that no such violation has occurred. "The judge basically concluded like we did, that this was filed without merit," said John Maher, executive vice president of Trammell Crow Corporate Services, one of two Trammell Crow units named as defendants. "We want to get back to our real mission and make Penn's facilities first-class." The deal affects about 160 employees, approximately 122 of whom were offered jobs in December by Trammell Crow. Officials estimate the agreement will save the University between 5 percent and 15 percent on facilities management costs, which totaled about $100 million this year. University and Trammell Crow officials have emphasized since the October 8 announcement that employee benefit packages will not be substantially cut. In the University's response to the suit, filed December 23, attorneys wrote 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. University spokesperson Kenneth Wildes said Penn officials are "generally pleased that the action has been dismissed." Attorneys for the plaintiffs could not be reached for comment yesterday. The judge's dismissal order said Trammell Crow was not a proper defendant in the case because it was not the original employer of the plaintiffs. Buckwalter wrote that the plaintiffs "failed to demonstrate that execution of the outsourcing contract is a completed fact," and that the issue lacked "sufficient immediacy" for him to render a judgment in their favor. Maher said Trammell Crow officials do not expect the suit to come up again. But Wildes conceded that "realistically, [the plaintiffs] have a right to refile when and if something does happen." The plaintiffs -- Richard Cipollone, Donald Calcagni, Linda Calcagni and Lisa Karnincic -- could not be reached for comment last night. Daily Pennsylvanian staff writer Lindsay Faber contributed to this article.