Cities and towns challenge continuing-contracts law

THE STATE has been sued by 16 Rhode Island municipalities, challenging a 2019 law that would guarantee wages and benefits for workers on expired contracts. / PBN FILE PHOTO/NICOLE DOTZENROD
THE STATE has been sued by 16 Rhode Island municipalities challenging a 2019 law that would guarantee wages and benefits for workers on expired contracts. / PBN FILE PHOTO/NICOLE DOTZENROD

PROVIDENCE – Sixteen municipalities on Tuesday filed a lawsuit challenging a new state law they say creates lifetime contracts.

The lawsuit seeks injunctive relief from enforcement of the law, claiming it violates the contract clause and home-rule provision of the Rhode Island Constitution. The bill, signed by Gov. Gina M. Raimondo in May, had been hotly contested by municipalities at the time.

Raimondo vetoed a previous version of the bill, saying it had gone too far by automatically extending provisions in collective bargaining agreements but she called the revised version a “middle ground.”

The law continues an expired contract until new terms are reached. However, if unions do not participate in negotiations, it only protects wages and benefits of workers and would then prevent workers from receiving future wage increases without remaining at a bargaining table.

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Cities and towns challenging the law say it creates lifetime contracts and that it negates the need for workers to negotiate for contracts.

House Speaker Nicholas A. Mattiello and Senate President Dominick J. Ruggerio issued a statement criticizing the lawsuit.

“We’re disappointed that some local leaders have chosen to take the unusual step of suing the General Assembly and the governor,” they said. “We are confident the law enacted to protect our municipal employees and teachers will withstand this legal challenge. This law requires all municipal leaders to come to the negotiating table in good faith. It protects wages and benefits when a contract has expired so that these employees can continue to serve their communities and our children. This law, which had been standard practice for many years, is fair to both sides and creates a level playing field for all parties.”

Raimondo spokesman Josh Block said the law is “narrowly tailored to return to what was the status quo for decades in Rhode Island, and we’re confident it will stand.”

Municipal leaders filing the lawsuit said the law puts them at a disadvantage.

“A contract’s terms cannot go on forever. That defies logic and is financially irresponsible,” said North Providence Mayor Charles Lombardi. “If mayors and town managers can’t negotiate to reduce costs, the alternatives are going to be cuts to important services, or property tax increases. We can’t allow that to happen.”

Cranston Mayor Allan Fung added that, “The lifetime contracts law ties the hands of local officials when negotiating, especially when trying to get concessions. As the costs of health care, pensions and retiree benefits keep rising, taxpayers will get crushed if local leaders can’t renegotiate those benefits.”

Plaintiffs include Barrington, Bristol, Burrillville, Central Falls, Charlestown, Cranston, East Greenwich, Lincoln, Little Compton, North Kingstown, North Providence, North Smithfield, Pawtucket, Providence, Smithfield and Woonsocket.

Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.

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