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UNION SEEKS INJUNCTION TO PREVENT NEW CENTER HOSPITAL FROM USING $300,000 REMOVED FROM EMPLOYEES' PENSION PLAN TO PAY DEBTS OF HOSPITAL

 UNION SEEKS INJUNCTION TO PREVENT NEW CENTER HOSPITAL FROM USING $300,000 REMOVED FROM EMPLOYEES' PENSION PLAN TO PAY DEBTS OF HOSPITAL
 DETROIT, June 26 /PRNewswire/ -- Today, Service Employees International Union Local 79 filed a lawsuit in federal court seeking an injunction against New Center Hospital and various corporate officers.
 The union's lawsuit seeks to prevent New Center Hospital and various officers from using $300,000 the hospital had removed from the employees' pension plan to pay the debts of the hospital. New Center Hospital is in Detroit.
 The lawsuit arose out of the hospital's decision, made in secret on June 11, 1992, to remove a corporate Detroit bank as trustee and appoint two high-level hospital officials, Harold Murdock and Alfred Moore, to act as pension trustees. The hospital's board of directors then directed that the "new" pension trustees loan the hospital $300,000 to pay the debts of the hospital. Murdock is chairman of the board of the hospital. Moore is chief executive officer. The union learned of the hospital's actions earlier this week.
 The union charges in its 21-page complaint that the actions of the hospital and corporate officers constitute clear violations of a federal law which prohibits an employer from using pension assets for its own use. The federal law also makes it unlawful for a pension trustee and fiduciary to use pension assets other than for the sole and exclusive benefit of the employees.
 Paul Policicchio, president of SEIU Local 79, which represents the hospital's employees, stated that the "hospital's removal of $300,000 from the pension trust and removal of the bank trustee is an extremely serious and flagrant violation of federal law, the union contract and the pension plan agreement. This hospital is attempting to steal the employees' retirement benefits. It has no right to a single nickel from the pension trust. This union will not let the hospital get away with it."
 A hearing before a federal judge will likely occur early next week.
 A copy of the complaint will be provided upon request.
 -0- 6/26/92
 /CONTACT: Paul Policicchio, president, SEIU Local 79, 313-965-9450; or John G. Adam, attorney, Miller, Cohen, Martens, Ice & Geary, P.C., 313-559-2110, for SEIU Local 79/ CO: Service Employees International Union Local 79; New Center Hospital ST: Michigan IN: HEA SU:


SM -- DE014 -- 4214 06/26/92 12:09 EDT
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Publication:PR Newswire
Date:Jun 26, 1992
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