Posted on: Monday, July 9, 2001
Legality of UPW comp plan examined
By Robbie Dingeman
Advertiser City Hall Writer
The Hawai'i Labor Relations Board will not step into the dispute over a tax-deferred compensation plan negotiated for members of the United Public Workers union last year.
City officials continue to question if the plan is legal. City Corporation Counsel David Arakawa Friday said he's "very surprised and disappointed" that the union asked for dismissal of the complaint.
The state labor board dismissed the complaint in an 11-page decision filed Thursday.
Arakawa said he was also disappointed that the state supported the union's action, which "resulted in the board not rendering a decision on the merits of whether the deferred comp plan is legal."
In March, the city balked at approving the contracts covering about 12,000 mostly blue-collar city employees who belong to UPW.
Officials questioned whether the deferred compensation would largely be controlled by UPW state director Gary Rodrigues. The questions emerged shortly after a federal grand jury indicted the powerful labor leader on charges that he and his daughter defrauded the union of at least $200,000.
Rodrigues has said that he would be one of seven trustees overseeing the plan, but he would appoint the other trustees pending ratification.
Rodrigues said he agreed that new hires would get fewer vacation and sick-leave days in exchange for the new benefit.
Arakawa emphasized that "the council and the mayor have always said that the employees deserve" the compensation that was negotiated.
But Honolulu officials have earmarked about $1 million for the plan, which won't be released until there is a final judgment that the plan is legal under Hawai'i law.
Arakawa said options include giving employees the money allocated and allowing them to deposit it in an existing plan where all city employees can save money in a tax-deferred account. But Rodrigues has said he opposes that option.
Advertiser City Hall writer Robbie Dingeman can be reached at rdingeman@honoluluadvertiser.com and at 525-8070.
