New London Ordered to Stop Outsourcing Union Recreation Work

Labor board rules city violated collective bargaining rules by allowing private firm to offer competing services

Published on Feb. 6, 2026

Got story updates? Submit your updates here. ›

The Connecticut State Board of Labor Relations has ordered the city of New London to stop allowing a private firm, Power Wellness, to offer recreation programming and services that compete with the city's unionized Recreation Department. The board ruled the city violated collective bargaining rules by subcontracting union work to the private firm.

Why it matters

This case highlights the ongoing tensions between municipalities, private contractors, and public sector unions over the scope of union work and the potential encroachment of private firms into traditionally public service areas. It raises questions about the balance between cost-saving measures and preserving union jobs and worker protections.

The details

In 2025, the city of New London entered a 5-year agreement with Power Wellness to manage the $40 million New London Community Recreation Center. Power Wellness began advertising for several positions, including fitness and recreation program roles, and was given responsibility for developing and managing programming at the facility. However, the local AFSCME union filed a complaint alleging the city was violating collective bargaining rules by allowing Power Wellness to offer "similar and competing services" to the unionized Recreation Department. The labor board sided with the union, ruling that the duties of the Power Wellness positions were "markedly similar" to work already performed by union members, and that contracting this work to the private firm was an "unprecedented" move that would "generate reasonable fear of future encroachment upon bargaining unit work."

  • In January 2025, the city entered a 5-year agreement with Power Wellness to manage the New London Community Recreation Center.
  • In February 2025, Power Wellness began advertising for several job openings, including fitness center director and recreation program sales manager.
  • In 2025, the union filed a formal complaint alleging the city violated collective bargaining rules.
  • On January 12, 2026, the State Board of Labor Relations issued its ruling in favor of the union.

The players

New London

The city that entered into an agreement with Power Wellness to manage the New London Community Recreation Center.

Power Wellness

The private firm that was contracted by the city of New London to manage the New London Community Recreation Center and offer recreation programming.

AFSCME Council 4, Local 1303-125

The union that represents salaried members of the New London Recreation Department and filed the complaint alleging the city violated collective bargaining rules.

Sharon Bousquet

The union president and assistant to the New London Recreation Department Director.

Joshua Posey

The New London Recreation Department Director.

Got photos? Submit your photos here. ›

What they’re saying

“We look forward to the city providing us with the resources and staffing to ensure that residents don't experience a lapse in service.”

— Sharon Bousquet, Union President (AFSCME Council 4, Local 1303-0125)

“Even worse, the private company would be a direct competitor with programs offered to residents, causing confusion and reducing opportunities for citizens to access high-quality public services that have traditionally been offered at a very low cost.”

— AFSCME Council 4, Local 1303-0125 (AFSCME Council 4, Local 1303-0125)

What’s next

The city has 30 days to develop and implement a plan for how facility work will be performed by union employees.

The takeaway

This case highlights the ongoing tensions between municipalities, private contractors, and public sector unions over the scope of union work and the potential encroachment of private firms into traditionally public service areas. It raises questions about the balance between cost-saving measures and preserving union jobs and worker protections.