House defers bills on arbitration

By Gordon Y.K. Pang
Advertiser Capitol Bureau

The House Labor Committee has shelved two bills introduced by Gov. Linda Lingle that were designed to blunt what the administration charged are the detrimental effects of binding arbitration on the state's finances.

Deferred indefinitely were House Bill 2326, which would have capped arbitration awards for Hawai'i Government Em-

ployees Association bargaining units at no more than 1.5 percent a year, and House Bill 2328, which would have amended rules on binding arbitration to require that arbitration panels give greater consideration to the employer's cost implications.

Ted Hong, the state's chief labor negotiator, testified earlier this week that the bills were introduced in response to the Legislature's decision last year to restore binding arbitration for HGEA employees. A Lingle veto of that legislation was defeated by override.

Labor Committee Chairman Marcus Oshiro, D-39th (Wahiawa), said after yesterday's meeting that placing a cap on binding arbitration raises, as proposed in House Bill 2326, would give an unfair advantage to the state and "turn any notion of collective bargaining on its head."

House Bill 2328 would have required arbitration panels to consider the effects of potential costs if raises being proposed were applied to all other bargaining units. The bill also would have asked arbitrators to look at a comparison of wages and other conditions with private-sector employees in similar positions and other factors. Oshiro said that such factors already need to be considered by arbitrators and that either side can appeal if unhappy with an arbitrated decision.

Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com or 525-8070.