UPW unit pursues pay deal with state
By Gordon Y.K. Pang
Advertiser Capitol Bureau
When the Legislature adjourned May 6, Unit 1 of the United Public Workers union was the only public employees bargaining group not to reach a new wage settlement.
The United Public Workers Unit 1, representing about 8,600 members, is in contract talks. The union reached a contract extension through June 30, 2005, but with no raises. The ongoing talks were triggered by the Hawai'i Government Employees Association's receiving wage increases this year. The state is offering a retroactive two-year contract with no raises in the current fiscal year, 4 percent for the fiscal year starting July 1. A union shop steward says the union wants a 9 percent raise starting July 1.
Because lawmakers would have to approve any raises, even if they were retroactive, missing the deadline guaranteed that Unit 1's roughly 8,600 janitors, sanitation workers, wastewater treatment operators and other blue-collar workers won't get any raises until at least July 1, 2005.
UPW Unit 1 contract negotiations
But a state official and the UPW's top executive both said Friday that they expect to reach a settlement soon.
Ted Hong, the state's chief labor negotiator, said UPW Unit 1 members should not be apprehensive about the lateness of their contract.
"In terms of the wages, we are obviously going into the next Legislature. The commitment has been that they will get a retroactive pay increase," he said. "When the whole package is put together, and they're able to see that, it's going to be, from any circumstances, a very generous package.
"They're going to be pleased and it's going to be worth the wait."
Dayton Nakanelua, UPW state director, said he wants to have a contract finished "as soon as possible."
Hong said talks have slowed because of complex side issues involving the state's need to reimburse the union for a deferred compensation plan that was declared unlawful, and specifics dealing with the Employee Union Trust Fund.
Hong said he does not believe it will be difficult for the state and the union to reach settlement once the side issues are resolved.
He said the state has offered Unit 1 workers a two-year contract with no raise in the current fiscal year, which ends June 30, and a 4 percent increase next fiscal year.
Nakanelua declined to discuss specific details of the negotiations.
But Arden Liu, a shop steward for janitors at the State Capitol and nearby government buildings, said unit leaders were told Thursday night by Nakanelua that the union's latest position calls for 9 percent raises beginning July 1, 2005.
Such an increase would be similar to those granted by an arbitrator to 23,000 members of the Hawai'i Government Employees Association in March.
That award calls for no raises during the first 18 months of a two-year contract, but a 5 percent across-the-board raise beginning Jan. 1, 2005.
In addition, most workers could move up one or more or pay grades, based on years of service, beginning July 1, 2004, which would result in raises as high as 9 percent.
Gov. Linda Lingle vetoed the HGEA raises, citing costs, but the Legislature overrode that decision.
The Lingle administration says the 4 percent raise it has offered Unit 1 workers would cost about $4.8 million annually, while a 9 percent raise would cost about $9.3 million each year. Most UPW employees make between $20,000 and $50,000 annually.
"Our state director strongly believes we can go for the 9 percent, too," Liu said.
Nakanelua refused to confirm or deny the numbers cited by Liu. "Generally, my policy is I don't discuss (publicly) what's going on in negotiations," he said.
As for what Hong said the state offered, Nakanelua said: "An offer was not made from the employer that was acceptable to our negotiating committee."
Hong said he had not heard of the 9 percent offer suggested by Liu.
Liu said he, like other Unit 1 employees, is disappointed no raises will be forthcoming until at least the middle of 2005. But Liu also said he doesn't doubt that union members will get the raises they seek at some point. "For me, personally, we're going to get (raises), and that's the optimistic part," he said.
Nakanelua took over the UPW's reins following an election in December 2003, a year after the parent organization — the American Federation of State, County and Municipal Employees — suspended longtime state director Gary Rodrigues. Rodrigues and daughter Robin Rodrigues Sabatini were convicted on federal charges of mail fraud, money laundering, embezzlement and accepting kickbacks.
Liu said he believes that Nakanelua has turned the union away from its recent troubles.
"I think we're headed in the right direction, we're headed on the right track," he said. "(Nakanelua's) goal is to give the union back to the people."
Hong said that he, the governor, Nakanelua and other parties met earlier last week. "It's going to take a little while longer than we thought," Hong said. "Maybe next week, or the week following, hopefully."
Unit 1 consisted of 8,626 statewide members as of Dec. 31, 2003, according to the Hawai'i Labor Relations Board. Of that number, 5,498 were state employees, including those who worked for the University of Hawai'i, the Department of Education, the Hawai'i Health Systems Corp. and the judiciary.
UPW last year reached a contract extension through June 30, 2005 with no raises, but with a stipulation that any salary or wage increases for HGEA would allow UPW officials to seek a reopening on that issue.
UPW's Unit 10, which represents about 2,600 prison guards, emergency service workers and licensed nurses, received a two-year contract in January worth 5 percent more in each year.
Other public employee unions that have reached settlements and arbitration awards include the Hawai'i State Teachers Association, the University of Hawai'i Professional Assembly, the State of Hawai'i Organization of Police Officers, the Hawai'i Fire Fighters Association and the HGEA.
Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com or at 525-8070.
