Hawaiian Air wins support

By Kelly Yamanouchi
Advertiser Staff Writer

Hawaiian Airlines' unions are close to completing votes on management-sought labor concessions aimed at saving the company $15 million and avoiding threatened job cuts or possible bankruptcy.

The Hawaiian unit of the Air Line Pilots Association representing 420 pilots set votes next week on a tentative agreement providing for $8 million in concessions.

Hawaiian's machinists, represented by the International Association of Machinists, voted last week to approve $3.8 million in concessions.

The Association of Flight Attendants also approved new contract terms, according to Ron Hoopai, chairman of the Hawaiian unit of the pilots union. The amount of the attendants' concessions was not immediately released.

The flight attendants union did not return calls for comment.

Hawaiian Air executives had asked for a total of $15 million in labor givebacks in a bid to cut costs and avoid layoffs and bankruptcy.

The pilots' tentative deal was negotiated with Hawaiian management over more than three weeks and approved by union leaders. The concessions involve productivity improvements, Hoopai said, but not cuts in wages.

Some pilots said the changes involve working more hours.

The changes are intended "to better position the company for future growth and financial stability during the aviation industry's current economic downturn," according to the pilots union.

Pilot-union leaders are hoping to have the agreement ratified by a March 7 deadline set by the airline's board of directors.

"If it's ratified with the pilots then the company can move forward and do what it needs to do to stay in business," Hoopai said. "If it's not ratified by the pilots it's up to the company to decide what to do, whether they go bankrupt or not."

Without the concessions, "there will be job cuts but we just don't know how many or how far they'll go."

"We are confident that under the circumstances, this is the best possible resolution for both sides," Hoopai said.

The pilots union has organized a contingency plan committee to prepare for situations that would include a Chapter 11 bankruptcy filing by Hawaiian.

Hawaiian executives said they will not comment on the talks with employees.

Meetings on the deal are scheduled this week. Voting will begin Sunday and run through Thursday.

Randy Kauhane, assistant general chairman for the International Association of Machinists & Aerospace Workers District Lodge 141, said an overwhelming majority of his 1,500 members last week accepted the concessions, which also did not include wages.

"I think the membership realized that the company needs financial assistance and by doing what we did we hope that it will help the company in the future," he said.