Hawaiian workers await details on concession request

By Debbie Sokei
Advertiser Staff Writer

Hawaiian Airlines employees will be receiving briefings over the next few weeks on labor concessions requested by trustee Josh Gotbaum. Advertiser library photo

Most of Hawaiian's 3,000 employees are waiting to be briefed on the plan. The trustee is seeking between $10 million to $12 million in labor concessions, according to a person familiar with the proposal who did not want to be identified because the plan has not yet been released publicly. The proposal also freezes the pilots' pension plan and calls for renegotiating aircraft leases.

Trustee Josh Gotbaum revealed his plan to the creditors committee and unions on Tuesday in Los Angeles, where the airline's attorneys are based.

Gotbaum said the givebacks are necessary for the airline's reorganization. It filed for Chapter 11 bankruptcy protection in March. Gotbaum wants Hawaiian to be out of bankruptcy by the Labor Day weekend.

Airline spokesman Keoni Wagner said the company's employees will be briefed on the plan in a series of meetings that started yesterday and will continue over the next few weeks.

Meetings will be held on O'ahu, the Neighbor Islands and the Mainland.

Standing behind a Hawaiian ticket counter, Carol Korzon, a customer service agent, said she wants to see the company emerge from bankruptcy, but not knowing what the company is asking for in concessions is unnerving.

"It's scary," Korzon said. "We don't know what we are going to give up yet. As long as they can promise us something in return it's OK. I'm going to have to keep the faith. We don't have that much to give back."

Hawaiian filed for Chapter 11 bankruptcy protection on March 21 after negotiating concessions from unions representing machinists, pilots and flight attendants estimated to save the company $15.3 million.

James Paleka, an airline employee for 37 years, has been through numerous labor negotiations. Two years ago when the airline downsized, Paleka moved from Moloka'i to O'ahu to keep his job.

"They should call this airline 'Concession Air'," Paleka said.

Purdy Waipa, a customer service agent, said he's not sure what to make of the proposed concessions since the company has been profitable.

"If profitability has gone up and they ... take more away, you gotta tighten your belt more," Waipa said.

"I have to see why they're talking about concessions if we are making money."

Hawaiian reported $13.5 million in operating profits in December on revenues of $68.9 million.

Gotbaum also proposed to keep the pilots pension plan by freezing its benefits and sharing the plan's costs between the company and the pilots.

The Air Line Pilots Association's economic analyst is reviewing the plan, said Jim Giddings, association spokesman.

The analyst will help the pilots decided if they should agree to concessions.

Pilot Bob Raben isn't happy the plan will be frozen.

"Getting us to pay for our own retirement is ludicrous," Raben said.

Reach Debbie Sokei at 525-8064 or dsokei@honoluluadvertiser.com.