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Phoenix Court Business Complex
27 & 28 King Cross Street
Christiansted, St. Croix
U.S. Virgin Islands 00820

phone: (340)773-0378 / fax: (340)773-0398
email:nnesq@vilegal.com



Articles of Interest

"At Will or Not?"
by Natalie Nelson, Esq.

In February, 1999 The Honorable Judge Thomas Moore, Former Chief Judge of the District Court entered a controversial opinion in the matter of Bell v. The Chase Manhattan Bank, et al., 40 F. Supp.2d 307, 1999. If it is left up to the Honorable Judge Thomas Moore, The Wrongful Discharge Act (hereinafter "The Act"), which has been law in the Territory since 1986, will become history. The Virgin Islands will then revert back to the traditional rule of an "At Will" jurisdiction under Restatement Second of Agency, which permits employment contracts to be terminated at the will of the employer or employee.

 

 


The Opinion

Judge Moore's controversial opinion in Bell v. The Chase Manhattan Bank, et al., 40 F.Supp. 2d 307, 1999  can be read in it's entirety by clicking the link below.

http://www.vid.uscourts.gov/97ci129c.PDF

(please note that the opinion will open in a new window in Adobe Acrobat Reader)


     Judge Moore’s Opinion was issued while I served as Legal Counsel/Director of Labor Relations at the V.I. Department of Labor. During that time, I had the distinct opportunity of serving on the legal team on behalf of the Government of the Virgin Islands. The team which consisted of attorneys from the Department of Justice and Legal Services of the Virgin Islands defended the validity of The Act. In his analysis, Judge Moore found that The Act to be invalid because it is preempted by federal labor law and violates the National Labor Relations Act by interfering with the right of the private employer and employee to negotiate employment contracts outside of the collective bargaining process.

     Judge Moore specifically took issue with The Act, as amended in 1996. He relied in large part on the statistics compiled by The Department of Labor to challenge the effectiveness of the administrative process for Wrongful Discharge. As my staff at the Department of Labor began to perform the tedious task of compiling the data, it became evident that the figures and percentages did not accurately reflect the effectiveness of The Wrongful Discharge process.

     As it exists, the administrative process at the Department of Labor is not costly and it serves to assist private employees, most of whom are unrepresented and would not be able to afford a similar court proceeding. Pursuant to 24 V.I.C. §76, remedies under The Act provide for reinstatements or backpay.  On the average, there was a relatively low employee reinstatement rate of 3% during the three year period from 1996 to 1998. Statistics for the same period of time reflected that more than half of the affected employees sought and received backpay as opposed to reinstatement.

     Judge Moore’s controversial ruling in Bell vs. Chase appeared to have been embraced by pro-business advocates and chastised by labor proponents. Was the opinion in and of itself flawed or was it simply a far reaching attempt to invalidate The Act in its entirety?

     While both sides continue to make fairly convincing arguments, it has become more and more evident that The Legislature will play a significant role in the final outcome, provided that the senators have the "political will" to act. Such action would entail amending or reintroducing legislation. If the legal opinion issued by the Legal Counsel’s Office at the Legislature of The Virgin Islands is any indicator, abolishing The Act in its entirety may not sit well with a majority of the current Legislators. The key players, including businesses, labor representatives and the public and private sector collectively, have publicly pledged to work together to strike a balance and achieve an outcome that would work to the benefit of the entire community.

     Conversely, silence may speak volumes as far as the latent intent to revert to an "At Will Jurisdiction". Given our critical economic condition in the Territory, the added leverage and autonomy for private employers and employees should not necessarily be written off without due consideration for what may inevitably be in the best interest of the Territory.

     In any society, the workforce is the backbone of the economy and should be given its due respect. The local workforce is comprised of employers and employees who must work in collaboration to achieve economic advancement. All parties must be able to co-exist peacefully and harmoniously in order to promote the best interest of the Virgin Islands. Evidently, the territory is poised in a "wait and see" position as it pertains to The Act.

     In the interim, Judge Moore has permitted the Department of Labor to mediate wrongful discharge cases and Wrongful Discharge complaints continue to be filed in Territorial Court. Let’s keep stay tuned to see what the next move will be!!!! Any of my colleagues want to take a bet on the odds, feel free to email me with your comments at nnesq@vilegal.com

 

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