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The Honolulu Advertiser

Posted at 9:50 p.m., Thursday, February 12, 2004

Progress cited in concrete talks

By Curtis Lum, Dan Nakaso and Debbie Sokei
Advertiser Staff Writers

A Hawaiian Cement executive said progress was made in contract talks tonight with striking workers and expressed hope that a settlement might be reached when the two sides reconvene tomorrow afternoon.

Company management and union negotiators met today for the first time since employees went on strike a week ago, giving a glimmer of hope to the state's construction industry that has been hobbled by the work stoppage.

But no talks were held today with Ameron Hawaii, O'ahu's other major concrete company.

Today's talks with Hawaiian Cement at the Teamsters and Allied Workers Local 996 Kalihi headquarters were arranged by federal mediator Ken Kawamoto. They began at 2:30 p.m. and ended about 8:15 p.m.

The two sides will meet again at 2:30 p.m. tomorrow, said Michael Coad, Hawaiian Cement's vice president and chief negotiator.

Coad said he was buoyed by the union's presentation of new offers yesterday. But he would not give details.

Teamsters President Mel Kahele made a brief statement, saying only that "there was some discussion" but that there was "no movement on the company's part." His body language conveyed more optimism that it did a week ago, the last time the two sides met.

Coad agreed that before today, negotiations appeared to be at a "logjam."

"That is a pretty accurate characterization of where we are," he said. "My mission is to negotiate the best bargaining agreement I can with the Teamsters for Hawaiian Cement."

The strike involves 211 Teamsters at O'ahu's two largest concrete companies. The ripple effects began immediately and have crippled housing, condominium and large-sized construction projects all over O'ahu. Hundreds of construction workers also have been told to stay home because they cannot proceed without concrete.

The Teamsters strike began just as Hawai'i's construction industry was on the verge of a predicted $5.4 billion year. It's an industry that government and industry leaders have expected to lead Hawai'i's economic recovery.

In all, 144 Ameron workers went on strike last week Friday. Another 67 Hawaiian Cement employees followed on Saturday. Hawaiian Cement and Teamsters negotiators last met on Feb. 6. Ameron's talks broke off Saturday.

The issues are similar at both companies: sick leave and company proposals to increase employee contributions to healthcare plans.

In their old contract, Hawaiian Cement workers paid nothing for their healthcare plans. Hawaiian Cement proposed that they bear 20 percent of the costs. Ameron wants its union employees to increase their payment from 20 percent to 30 percent.

Both companies have said that rising healthcare expenses represent the fastest growing segment of their labor costs.

Like other companies around the country, Ameron and Hawaiian Cement officials have argued that employees who pay more of their healthcare expenses will use the system less. And by being more careful, the companies argue, the rising cost of medical care will slow.

Ameron Hawaii's medical costs to provide employee coverage through the Teamsters Health and Welfare Trust Fund in Honolulu have risen 10 percent to 20 percent every year over the past four years, company officials said. This year, Ameron's costs will jump 21 percent.

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

At Hawaiian Cement, the highest paid union workers earned $116,000 in 2003 and the average employee made $85,000.