Hawaiian Cement workers approve new labor deal

By Dan Nakaso
Advertiser Staff Writer

Hawaiian Cement workers will return to their jobs Monday after they voted 42-20 yesterday to accept the company's "last, best and final offer" and end their 42-day strike.

Teamsters President Mel Kahele, left, and Gary Keuma, a service person with Hawaiian Cement, shake hands shortly after Kahele announced that striking Hawaiian Cement workers were going back to work. Bruce Asato • The Honolulu Advertiser

It was a limited victory for O'ahu's construction industry, which halted dozens of projects and laid off hundreds of workers during the strike. Not until both companies are back on the job will the island resume a building boom brought on by increasing demand from the military and homebuyers.

Although Hawaiian Cement workers voted more than 2 to 1 to accept the company's offer, the mood at the Teamsters headquarters in Kalihi was subdued.

Some union members were still upset over a new provision requiring them to pay 20 percent of their medical insurance premiums. The company was paying 100 percent of employee medical costs under the old contract.

"We're not pleased with us going back to work with the 20 percent copayment," Teamsters President Mel Kahele said. "But this is democracy. The vote was 2 to 1 and that was the decision made by our rank and file."

Like other Hawaiian Cement employees, heavy-equipment operator Patrick Quijano would not say how he voted and expressed little joy over the outcome.

"The vote was 42 to 20," he said. "The word was to go back to work."

Mixer-driver Ben Garces, asked if he voted "yes" on the agreement, instead said, "the medical was really against it, but we're ready to go back to work."

Lingle offers a few words

Before the Teamsters' vote, Gov. Linda Lingle spoke to the members and said they need to do what's best for their families, but they should also realize the effect their strike has had on Hawai'i's construction industry and unrelated businesses.

Lingle's appearance surprised workers such as Quijano. And Michael Coad, Hawaiian Cement's vice president of operations, believes the governor may have been a factor.

"We need to extend a special thank you to Gov. Lingle," Coad said. "She's a very powerful, very influential, very convincing individual."

Lingle said she would likely get involved with the strike between Ameron Hawaii and the Hawai'i Teamsters and Allied Workers, Local 996 only if the two sides reached the same point as the Teamsters' dispute with Hawaiian Cement.

But the talks between Ameron and the Teamsters appear more contentious than the Hawaiian Cement negotiations and no new sessions have been scheduled.

Hawaiian Cement's agreement requiring employees to pay 20 percent of their medical costs was offset by more desirable provisions, Kahele said, such as five years of medical coverage for employees who retire and elimination of the company's proposal to cut the number of sick days from 18 to nine.

Pressure on Ameron

Ameron Hawaii presented its "last, best and final offer" to the union on Thursday. The offer calls for employees to pay 30 percent of their medical costs — up from the current 20 percent. The union rejected it with Kahele saying it doesn't include the same kind of desirable concessions as the Hawaiian Cement agreement.

Yesterday's settlement with Hawaiian Cement, Kahele said, "Hopefully ... (puts) pressure on Ameron to put on a reasonable package so we can get back to work. We've got 144 people out there that are eager to go back to work, but not under those conditions they put on their final offer."

Kahele described his feelings over the stalled Ameron negotiations as "not mad — just not happy."

Coad, of Hawaiian Cement, would also like to see Ameron settle with the Teamsters.

Ameron controls 60 percent of the concrete market and has 52 trucks compared with Hawaiian Cement's 40.

But Hawaiian Cement cannot gain much market share even with Ameron on strike, Coad said, because it's limited by the number of trucks, material and federal regulations that restrict drivers to 60 hours per week.

"I will be much happier when the Ameron matter is resolved," Coad said. "We can't handle all of this work."

Coad repeated the company's position that it will only take orders from existing customers in the weeks after the strike.

The first deliveries will begin Monday at 7 a.m. with Schuler Homes Hawaii Inc.'s High Pointe project of single-family homes, Hickam Air Force Base's Family Housing project and Punahou School's Case Middle School.

"The position I find myself in is like winning the lottery," Coad said. "We've got people we haven't done business with in quite a few years who all of a sudden want to get on our schedule. Friends I never knew I had have suddenly showed up."

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