Posted on: Tuesday, July 24, 2001

Hawai'i Supreme Court hears pay raise dispute

By David Waite
Advertiser Staff Writer

The Hawai'i Supreme Court heard arguments yesterday in a lingering dispute over whether the state Legislature has the right not to fund negotiated pay raises and to bar public worker unions from negotiating for future wage and benefit increases.

The raises were negotiated for the 1997 through 1999 period, but the 1997 Legislature failed to pay for the raises.

The 1998 Legislature then decided to reduce "employer" contributions to the state retirement system for public workers as a way to fund the previously negotiated pay hikes. In addition, the Legislature also passed the so-called "Act 100," which declared that there would be no negotiations concerning wage increases or other "cost items" from 1999 to 2001.

The United Public Workers, Hawai'i Government Employees Association, the Hawai'i State Teachers Association and the Hawai'i Fire Fighters Association challenged the law on constitutional grounds, claiming that the Legislature was not empowered to take away a collective bargaining right the unions claim is protected by the state Constitution.

The unions won a ruling on their behalf in state Circuit Court, but the state administration has appealed the ruling to the Supreme Court, claiming that the Legislature was, in fact, entitled to amend collective bargaining laws.

The Hawai'i Supreme Court justices took the matter under advisement yesterday but did not indicate how soon they might rule on the matter.