Cayetano suggests new deal for HGEA

By Ronna Bolante and Kevin Dayton
Advertiser Capitol Bureau

Gov. Ben Cayetano said yesterday that the state can pay the raises the Hawai'i Government Employees Association won at arbitration last year if the union agrees to reforms.

Cayetano had threatened to veto the HGEA raises if the Legislature approved them, but this week he met with union leaders to suggest a compromise.

"I think that if we can reach an agreement where the state does see some changes which will make the government more efficient and less costly — and is good for state workers as well in the long run — then I would not veto the (pay raise) bill," Cayetano said .

The governor has insisted for almost a year that the state cannot afford the raises, which average about 14.5 percent over four years for HGEA members.

Cayetano argued the arbitration panel that awarded the raises overstepped its authority. The governor has also threatened to impose layoffs if forced to pay the HGEA raises. He urged HGEA leaders to meet with the state to compromise on smaller raises, but union leaders have refused.

HGEA Executive Director Russell Okata released a statement yesterday stressing the union still won't renegotiate the arbitrated raises.

"Our meeting with the governor (Wednesday) was not to renegotiate the award," Okata said. "The award is final, binding, legal and fair, and we are pleased the Legislature is moving to fund it this year."

Large bipartisan majorities in the House and Senate disagree with Cayetano and many lawmakers say the state is obligated to pay the raises because the arbitration decision was supposed to be binding on labor and management.

The House and Senate gave preliminary approval to a bill appropriating $153 million from the general treasury over the next two years to pay the HGEA raises.

The list of "government efficiency" measures Cayetano has been seeking includes reductions in sick leave and vacation for public workers; authority to privatize public services, and steps to cut costs in health coverage for public workers and retirees.