Posted on: Sunday, February 29, 2004
Healthcare costs remain at forefront of concrete strike
| • | Frustration, bills piling up since concrete layoffs |
By Dan Nakaso
Advertiser Staff Writer
Q. Why are people so worried about O'ahu's concrete workers' strike?
A. Government leaders, in particular, fear that the concrete strike could jeopardize Hawai'i's construction industry, which had been projected to generate $5.4 billion in 2004. Last year, the industry made $3 billion. The strike by Hawai'i Teamsters and Allied Workers Local 996 against O'ahu's biggest concrete companies — Ameron Hawaii and Hawaiian Cement — has slowed and even halted construction projects around the island and led to hundreds of layoffs in businesses that are sometimes only remotely connected to the concrete industry.
Q. Are the union workers striking for more pay?
A. Most of Ameron's workers — 60 cement-mixer drivers — earn $25.54 an hour and the median salary was $71,433. At Hawaiian Cement, the average employee made $85,000, according to company officials.
Teamsters President Mel Kahele said the union members voted to strike because of two other issues: increased medical costs for employees and reduced sick leave.
Q. Are striking workers getting state unemployment benefits?
A. Labor officials have yet to determine whether the striking workers will be eligible for unemployment benefits. If their companies' operations were halted by 20 percent or more, striking employees would be ineligible for unemployment benefits, said James Hardway, of the Department of Labor and Industrial Relations. That rule was put in place to prevent striking workers from effectively getting a state subsidy for shutting down a company's operations.
Q. Are the issues the same for both companies?
A. Ameron wants employees to pay 30 percent of their medical costs, up from 20 percent. Hawaiian Cement wants its union members to pay 20 percent of their medical costs. They now pay nothing. The union also wants to discuss reinstituting paid sick days at Ameron, which the company eliminated three years ago. Hawaiian Cement wants to reduce the amount of sick days by 50 percent.
Q. Why do the companies want employees to pay more for their healthcare costs?
A. Medical expenses represent the fastest-rising portion of the labor costs for both companies. Ameron provides employee coverage through the Teamsters Health and Welfare Trust Fund in Honolulu, where costs have risen 10 percent to 20 percent every year during the past four years, company officials say. This year, costs are expected to jump 21 percent.
Hawaiian Cement's medical, dental, drug and vision plan costs $479 per month per employee, which the company pays.
Hawaiian Cement officials say they have the highest labor costs in the market and need to cut sick leave to remain competitive with Ameron.
Q. Can't the union members afford to pay more for healthcare?
A. Unions in industries nationwide are wrestling over similar issues. With the cost of healthcare rising, unions that pay little or nothing for healthcare costs worry about shifting the expenses from profitable companies to union members. Q. Can Ameron Hawaii and Hawaiian Cement afford to pay for the rising healthcare costs?
A. Both companies acknowledge they make a profit, but neither has disclosed exact figures. Each has said, however, that employees who contribute their own money toward their own healthcare will become more aware of the costs.
Reach Dan Nakaso at 525-8085 or dnakaso@honoluluadvertiser.com.
