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The Honolulu Advertiser

Posted on: Friday, April 2, 2004

CONCRETE WORKERS STRIKE
Deal in concrete strike up for vote tomorrow

By Dan Nakaso
Advertiser Staff Writer

George West, Ameron Hawaii's vice president of operations for O'ahu, said the company is "very happy we can get back to work."

Photos by Eugene Tanner • The Advertiser

The state's largest concrete producer and striking Teamsters reached a tentative settlement last night to end the 56-day strike that has crippled O'ahu's red-hot construction industry.

The Hawai'i Teamsters and Allied Workers Local 996 will hold a ratification vote at noon tomorrow at its Kalihi headquarters.

If approved, the bulk of the 144 Ameron Hawaii workers who went on strike Feb. 6 would be back at work Monday morning at Ameron's Sand Island, Kapa'a Quarry and Campbell Industrial Park operations.

The proposed settlement would increase pay by $4.20 an hour by the end of the five-year contract, but would also increase employees' share of medical costs from 20 percent to 30 percent.

"I feel confident ... that we're looking at ending this strike on Saturday," Teamsters President Mel Kahele said last night.

Kahele said the strike was worth the effort. And he issued a warning to other companies that negotiate contracts with the Teamsters:

"The 56 days that we've been out, it's been a big success," Kahele said. "It's going to send a strong message to all of the employers out there — and including Ameron —next time you come back and expect us to pay more monies out of our pockets, with you making all of these profits, be careful. We may take you out on a strike again."

George West, Ameron Hawaii's vice president of operations for O'ahu, said no one has benefited from the strike against Ameron Hawaii or a separate Teamsters strike against Hawaiian Cement that was resolved last week.

"It's hurt us ... it's hurt employees, it's hurt our customers," West said. "It's hurt everybody. ... These kinds of strikes are not good for either side.

"This has gone on entirely too long, and we're very happy to get back to work. ... We're very happy we can get back to work and start servicing our customers and get this thing rolling again."

Negotiators for Ameron Hawaii and the Teamsters met off and on for more than nine hours yesterday at the union's Hart Street offices.

In the end, they were finally able to compromise on the contentious issue of increasing employees' share of their medical payments from the current 20 percent to the company's proposed 30 percent.

The proposed five-year-contract would gradually increase the employees' share of their medical costs. It would remain at 20 percent for the first two years, rise to 25 percent in the third year and reach the company's goal of 30 percent in the fourth and fifth years.

Salaries also would jump $1 per hour in each of the first two years; 80 cents per hour in the third; and 70 cents per hour in the fourth and fifth years. The total pay increase would add up to $4.20 per hour over the life of the contract.

Most of Ameron's workers — 60 cement-mixer drivers — earn $25.54 an hour. But with an average of 55 hours a week including overtime, spread over six days, the highest-paid Ameron Teamster earned $120,880 in 2002. The median salary was $71,433.

Under the new contract, union members would spend less on their medical coverage because their payments would come from their raises before taxes are taken out, West said.

"They're going to be paying actually less because of the pre-tax feature," West said. "The company feels happy about being able to maintain its cost-control objectives while maintaining an excellent wage-and-benefit package for our employees. We have been able to achieve a phase-in of our co-pay to 30 percent."

The two sides met Wednesday and again yesterday for the first time since March 18, when Ameron Hawaii presented its "last, best and final offer."

The union rejected the March 18 offer, then resolved its separate strike with Hawaiian Cement, Ameron's main competitor

The Hawaiian Cement settlement jump-started construction projects across the island that had been shut down since the dual strikes began.

On Wednesday, West returned to the bargaining table with the same offer the union originally rejected: A 30-percent employee payment to their medical costs and a total pay raise of $3.80 per hour.

Mel Kahele head of the Hawaii Teamsters & Allied Workers Union Local 996 addressed the media on the settlement of the strike with Ameron last night. The contract will be voted on by the union tomorrow. If ratified, Ameron said it will take time to resume full production.
The tentative settlement not only increases the pay raises and phases in the increased medical costs, but also allows Teamsters to receive company-paid medical benefits for four years after they retire, Kahele said.

If union members ratify the agreement tomorrow, West said Ameron Hawaii will need time to resume full production.

"It's going to be a slow roll-up," West said. "We'll have to roll into things. ... It's not quite 100 percent on Monday."

For Marshall Hickox, vice president and part-owner of Homeworks Construction Inc., a custom home builder and remodeler, the strike forced him to lay off five employees, put five more on part-time status and delayed completion of his own custom home in Kahalu'u.

The strike drained his savings. And it forced Hickox and his wife to pay $3,600 for both the mortgage on their new home and rent while they wait for it to be finished.

"Financially it's been a little rough," Hickox said. "We are not able to pay that with our income."

But the potential end to the strike means Hickox can get Homeworks Construction back on track.

"I would imagine we could bring everybody back as soon as a week to two weeks," he said.

And soon, Hickox hopes to give his employees raises and bonuses that he had planned before the strike began.

Advertiser Staff Writer Debbie Sokei contributed to this report.

Reach Debbie Sokei at dsokei@honoluluadvertiser.com or 525-8064. Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.