Dozens of employees at a Minneapolis-based health care nonprofit suddenly found out they’d lost their jobs Thursday.
Rainbow Health employees were told by the board that the nonprofit would be closing just days after its CEO resigned following a unanimous “no confidence” vote by the Rainbow Health labor union, represented by SEIU Healthcare Minnesota & Iowa.
Rainbow Health’s website states that it “provides in-person and remote mental health and substance use support for LGBTQ+ people and those living with HIV.”
According to the union, employees received an email Thursday morning about an emergency all-staff meeting in which the board chair told them the union would be closing down immediately.
In a statement posted to Instagram, Rainbow Health said “insurmountable financial challenges” led to the shutdown and that it was helping patients transition to new providers.
“Once again, we sincerely apologize and thank you for your understanding during this difficult time,” Rainbow Health wrote. “Your health and well-being is our top priority, and we remain committed to ensuring you continue to receive the care you need.”
The sudden closure affected about 60 union members and additional management staff, even though the union contract requires members to be given 30 days’ notice before being laid off.
The Rainbow Health Workers Coordinating Committee, which represents union members across several Rainbow Health teams, issued the following statement:
“We are shocked, saddened and outraged by this news, both as staff dedicated to the mission of Rainbow Health and even more so as customers and communities. We are left with many big questions: Why was this momentous decision made without any warning? What happened to the funds the organization has been receiving? What was happening with the leadership and board that got us to this point? Why did the union not acknowledge how dire the budget situation is, especially after we have repeatedly demanded financial transparency and be at the table to resolve the issues? What steps are being taken to ensure our customers continue to receive critical services from other organizations and providers? How do they justify the lack of notice, knowing the damage this will cause to our very marginalized customers who rely on our specialized support? As we demand answers to these questions from the organization’s board of directors, we stand united and will continue to fight for our rights as workers and to find a way to ensure continuity of customer care to members of the communities we serve.”
Rainbow Health Worker Coordination Committee
The union said it would help workers enforce their contracts and gather an explanation for what led to the nonprofit’s closure.
