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The Honolulu Advertiser

Posted at 12:01 p.m., Wednesday, February 25, 2004

Concrete talks break off

By Dan Nakaso
Advertiser Staff Writer

Hopes for a quick end to the 20-day-old concrete strike that has hobbled O'ahu’s construction industry were dashed today when striking Teamsters and Hawaiian Cement officials broke off contract talks with no timetable for any new negotiations.

The talks at the Kalihi headquarters of the Hawai'i Teamsters and Allied Workers Local 996 broke off around 10:40 a.m. today — just over an hour after they began.

The key sticking point was Hawaiian Cement’s unwillingness to budge from its original proposal requiring union members pay 20 percent of their medical insurance costs, Teamsters president Mel Kahele said. Hawaiian Cement currently pays all of the 67 striking Teamsters’ medical coverage.

Michael Coad, Hawaiian Cement’s vice president, declined to describe what led to the breakdown or to discuss the latest proposals. But Coad said the union negotiators rejected Hawaiian Cement’s "fair proposal."

"I’m sorry to report that talks have broken off," Coad said. "... I’m disappointed, there’s no question about it."

Moments later, Kahele said: "We apologize again for all of the inconvenience we have caused out there, but right now the ball is in the company’s lap. We are not and will not pay no co-payments for our medical with the company making $19 million in profits."

The company has said it is profitable but hasn’t released specific earnings.

The most recent round of talks between the union and Hawaiian Cement — which began Monday and continued for a second day today — had been the first glimmer of progress since both sides last met on Feb. 13.

The strike began on Feb. 6 when 144 Teamsters set up picket lines around Ameron Hawaii. Another 67 Teamsters who work for Hawaiian Cement struck the next day.

No talks have been held between the Teamsters and Ameron Hawaii officials and none are scheduled.

The effects of O'ahu’s concrete strike have rapidly expanded beyond the picket lines and has since cost hundreds of construction workers their jobs and slowed or halted construction projects across O'ahu.

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

Hawaiian Cement proposed union employees bear 20 percent of the medical costs. Ameron wants its union employees to increase their contribution from 20 percent to 30 percent.

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

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.