April 5, 2002 – A top Hovensa official told the Senate Labor and Veterans Affairs Committee Thursday that the refinery supports its largest subcontractor, Wyatt V.I., in its requirement that prospective hires sign a pre-employment agreement calling for binding arbitration in disputes with Wyatt, Hovensa or any affiliated companies that cannot be resolved internally.
Alex Moorhead, Hovensa vice president for government affairs and community relations, said the refinery filed documents in District Court on Wednesday to join Wyatt in its motion to have the court declare that the mandatory arbitration agreement is legal. The Houston-based company is the refinery's maintenance subcontractor.
Attorney General Iver Stridion told Sen. Norma Pickard-Samuel, the committee chair, that he is challenging the legality of Wyatt making the agreement a condition of employment.
Under questioning by Pickard-Samuel, Stridiron said he was unable to discuss details of the pending litigation. But he said members of his legal team have gone to battle against Wyatt in the hope that Chief District Judge Raymond Finch will see their view.
Stridiron said, "It is my intension to pursue this up to the Supreme Court. We will hire experts to address this."
He also said his office has not received any formal complaints from refinery workers about the pre-employment agreement. But, he said, "We will defend the rights of all Virgin Islanders."
In March, the attorney general issued an opinion that the binding arbitration agreement is illegal under Virgin Islands law. In response, Wyatt and Hovensa charged that Stridiron's opinion conflicts with federal court decisions on similar agreements and said they welcomed the opportunity to have the issue resolved through the court system. (See "Refinery and V.I. spar over binding arbitration.)
A notice given to all Wyatt job applicants states: "Your application will not be considered until you have signed the agreement."
Charles Engeman, legal counsel for Wyatt, told the committee that the company is concerned with protecting the rights of its employees. He said all the agreement does is to change the format and time required for settling disputes. "There are important issues which can be resolved rapidly," the attorney said.
In a release issued on March 15 in response to Stridiron's ruling, Wyatt said the agreement "simply changes the forum for the resolution of such disputes from the incredibly backlogged court system to a forum that can resolve the dispute in a matter of months."
Stridiron said as soon as he learned of the agreement requirement, he asked Labor Commissioner Cecil Benjamin to see if similar requirements are in place at any of the four mainland locations where Wyatt also is contracted to provide refinery maintenance services.
Benjamin said the agreement is only with Wyatt V.I. "What is happening here is an experiment that is against the basic statutes of the V.I.," he said. "This document says many things that are offensive to us." He charged that the agreement is asking persons to waive their rights in order to be considered for a job and said there are other methods to resolve a dispute.
Pickard-Samuel said, "I am pleased with the Labor Department's stance. We have to strike a balance." She added, "I am pro business, but I am also pro labor."
Sen. Celestino A. White Sr. told Wyatt representatives, "We understand what you don't discriminate against, but what do you discriminate against?"
White told Todd Reidlinger, Wyatt project director, that since it has been initiated only in the Virgin Islands, the agreement is a form of "geographical discrimination" leading to racial discrimination. White also said a company entering into individual contractual agreements with employees is a method of union busting.
Engeman said he had suggested the arbitration agreement after researching the cost of litigation in the Virgin Islands. In March, Wyatt hosted a community workshop at the Buccaneer Hotel on strategies for managing a diverse workplace. Engeman cited a U.S. Supreme Court case upholding the use of a pre-employment agreement by the nationwide electronics retail chain Circuit City.
Moorhead, defending Hovensa's decision also to implement the arbitration agreement, disputed White's claim of "geographical discrimination." The law prohibits discrimination on the basis of sex, race and national origin, he said, "but the characterization referred to is not covered by law." Moorhead said Hovensa has researched the issue and believes the agreement is legal.
Wyatt officials said that of about 1,200 job applicants, some 300 have signed the agreement.
"This is not an action against the workers. It is an action in favor of the laws of the V.I. and the United States," Moorhead said. "This whole matter is being mischaracterized."
Terrance "Positive" Nelson, president of the local labor union Our Virgin Islands, raised concerns about the agreement's specification that a neutral arbitrator certified by the American Arbitration Association resolve disputes. Moorhead said such arbitrators are available within the Virgin Islands, and Benjamin said he is aware of about five local residents who are so certified.
Sen. Douglas Canton Jr. said he feels the agreement should be crafted in a way so as to foster goodwill between labor and management. In terms of work options, he said, "in the U.S. it is easy to cross borders to seek employment, but in the V.I. it is limited."
There was agreement among the senators that the issue will have to be decided in court. "Sometimes you win the battle but lose the war," Sen. Vargrave Richards said. "It is best to negotiate this type of situation to come to a resolve."
All committee members were present for the roll call: Sens. Canton, Donald "Ducks" Cole, White, Richards, Emmett Hansen II, Pickard-Samuel and Almando "Rocky" Liburd.
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