COVENTRY, R.I.—Coventry Credit Union has released funds that will allow the Coventry Fire District to continue operations—including paying firefighters—for about six more weeks.
The $240-million CU had frozen about $118,000 in fire district funds for payment of a $465,000 debt. The temporary agreement was negotiated late Monday by the district’s board, its firefighters union and the CU—the fire district’s largest creditor.
The district board agreed to use 70% of that money, plus any other revenues it collects through Nov. 15, to pay its firefighters, who have not had a regular paycheck in 46 days. The remaining 30% will be used by the district for non-salary expenses, the Providence Journal reported.
CU Board Chairman Frank Palin said the firefighters union and the board would use the six-week timeout to try to reach an agreement on a new firefighter contract.
Palin told the Journal the meeting with the union negotiators was not contentious. “It was difficult negotiating, but we managed,” he said.
Beside his members getting some of the back pay they are owed, union president David Gorman told the Providence Journal the fact that bargaining even took place was progress. He thanked Stern for issuing orders last week that all the participants come to the Kent County Courthouse and meet.
“That's what we’ve been pushing for a long time,” Gorman told the publication. “My biggest thing was getting into the room.”
A 70% share of $118,000 is about $82,000 and is still short of what the district firefighters are owed for back pay, Gorman said. As of Sept. 18, about two and a half weeks ago, they were due at least $80,400 in pay and expenses. Court filings have said the district has a payroll of about $50,000 every two weeks.
In exchange for release of the funds, the district will continue to pay only interest in its debt, not principal, until Oct. 28, 2016. The credit union also got liens on the district’s fire house and other property, should the district dissolve, the Journal reported. The credit union froze the district’s accounts last week after the district’s board refused to meet to discuss a repayment arrangement.