A health-care union and O'Hara-based Grane Healthcare have settled labor contracts covering 500 employees at five nursing homes in Western Pennsylvania, ending a legal feud over allegations of unfair labor practices, libel and slander.

The settlement announced yesterday between Grane and District 1199P of the Service Employees International Union was brokered by the National Labor Relations Board and the Federal Mediation and Conciliation Service.

Gerald Kobell, the NLRB's regional director, said both sides ultimately agreed to end lengthy and costly litigation and begin a new and hopefully more constructive relationship. The contracts at the five homes were ratified before yesterday's announcement.

The union had charged that Grane prematurely implemented collective bargaining agreements in May without reaching a lawful impasse and subsequently failed to bargain in good faith and failed to properly reinstate employees who staged a one-day strike at Grane's LaurelWood care center in Johnstown.

Grane had filed four lawsuits in various state courts alleging the union had unjustly defamed the company by making false claims over its patient care practices on lawn signs, in fliers distributed at public events and on Web sites. The lawsuits named the union, certain officers including 1199P President Tom DeBruin and 16 employees.

The lawsuits were withdrawn with each side agreeing to pay their own legal fees. Their withdrawal was a key part of the settlement, as was the union's agreement that employees at the Laurelwood facility may file a petition with the NLRB to decertify the union if they wish to do so.

The union was required to distribute a news release in which it praised Grane and its employees for their "excellent" patient care and "fine work," especially during the protracted labor dispute, and conceded that some of its criticisms of Grane and Grane-managed facilities were inaccurate.

Grane has in fact met and exceeded all federal and state standards for nursing home care and continues to do so, according to the statement issued by Kobell's office.

The union agreed to dismantle a Web site critical of Grane and remove disparaging statements and inaccurate statistics about Grane from search engines and other sites.

Grane acknowledged that continuation of its libel and slander suits would be insensitive and divert the attention of all from patient care and employee representation.

The parties further agreed that they would meet to resolve existing grievances filed on behalf of union members and would participate in mediation and arbitration if necessary.

In addition to Laurelwood in Cambria County, the separate contract settlements cover the Altoona Center for Nursing Care in Blair County, HarmarVillage Care Center in Cheswick, the Harmon House Care Center in Mount Pleasant and Providence Care Center in Beaver Falls. Terms of the contracts, all three years in length, were withheld.