Posted on: Saturday, April 16, 2005
State workers to get 5% raises
By Gordon Y.K. Pang and Derrick DePledge
Advertiser Capitol Bureau
An independent arbitrator has awarded 24,000 members of the Hawai'i Government Employees Association — the state's largest union — raises that average about 5 percent in each of the next two years.
The ruling was criticized by Gov. Linda Lingle and closely watched by the unions for teachers and blue-collar government workers. The Hawai'i State Teachers Association and United Public Workers are still negotiating their contracts and the HGEA situation is seen as a harbinger for the other two unions.
Lingle last night denounced the decision, saying: "This arbitration award continues a trend of taking almost every single penny of the state's revenue increases and using it for collective bargaining increases."
Randy Perreira, deputy executive director of the HGEA, said the union was pleased with the award. "It is something that is reasonable and fair," he said.
The HGEA represents white-collar state and county government workers.
The contract is expected to cost the state about $97.3 million over the next two years, according to calculations by state Budget Director Georgina Kawamura. Cost implications for the four counties were not immediately available.
How much the state needs to pay in worker raises, some lawmakers have warned, could affect other state programs or proposals that need money, including tax relief being sought by the governor and some lawmakers.
Kawamura said the administration is worried that if the same raises are given to state employees who belong to the HSTA and the UPW, it could cost the state about $222 million over the next two years and then about $200 million annually in future years.
The arbitrated package also includes a $33 million contribution to the employee health fund.
Lingle stopped short of predicting that the state Legislature will shoot down her proposal for tax relief this session but warned that other state services may be in jeopardy.
"This arbitration award means that our infrastructure will continue to deteriorate, and we won't have the money we should for our needy, our schools, our harbors, our airports, our environment, new programs and initiatives, and we won't have the money we should to help those of our citizens who do not work for the state of Hawai'i," she said.
Senate Ways and Means Chairman Brian Taniguchi, D-10th (Manoa, McCully), said it is too early to determine what is in or out of the budget and six-year financial plan, noting that the other two contracts have yet to be finalized. "There are a lot of balls in the air," Taniguchi said.
Kawamura was also critical of the decision, noting that the arbitrator incorrectly factored wages that are paid to employees outside of the state.
The HGEA had sought wage increases of 10 percent to 14 percent over two years for its mostly white-collar employees. The state's position called for raises of 1.5 percent, with increases to 4 percent for some supervisory positions.
Yesterday was the deadline for the arbitrator to make a decision.
Lingle noted that the settlement was reached with HGEA Units 2, 3, 4, 6, 8 and 13 under the controversial binding arbitration law. While the state and four counties are obligated to pay whatever is decided by the independent arbitrator, the settlement still needs to go to the Legislature and county councils for their approval.
Bill Brennan, a spokesman for Honolulu Mayor Mufi Hannemann, said the mayor had set aside a modest amount in the budget for pay raises for city workers but would have to work with the City Council to cover the balance now that the award has been announced. "I think it was higher than the amount in the budget," he said.
The governor renewed her call to lawmakers to repeal the binding arbitration law "before we permanently mortgage the futures of Hawai'i's children."
Perreira disputed Lingle's characterization that arbitration is sapping the state's revenue. "To me, I think the governor is choosing to hide behind her argument that binding arbitration is an inappropriate and unfair way to resolve the pay issues for government employees, which we clearly disagree with.
"It's an excuse."
Union criticizes Lingle Late last night, HGEA executive director Russell Okata also took issue with Lingle's comments.
"It is unfair for the administration to scare the public by saying it would cost the state hundreds of millions of dollars if our raise were given to the other outstanding bargaining units," Okata said. "If this were a critical factor, then the state should not have given raises of 9 and 11 percent to the University of Hawai'i faculty and raises of 8 to 10 percent to the firefighters and police officers."
HSTA president Roger Takabayashi said he was encouraged by the arbitrator's award but said teachers would ask for larger increases.
The teachers union and state labor negotiators are expected to continue talks over the weekend.
The teachers had asked for pay raises of 15 percent in each year of the two-year contract. The state offered 1.5 percent raises.
"We are ready, willing and able to go the distance to get a fair deal for the teachers," Takabayashi said.
The contract announced last night does not cover HGEA's Unit 9, which consists of about 1,200 nurses at state hospitals, which were negotiated separately. The status of those talks were not provided.
The arbitration report lists the cost to the state over the two years at $82 million. Kawamura said that the figure is in error and that her calculations show a higher, $97.3 million projected price tag. Perreira said he believes that the state's estimate likely includes managerial employees who are not covered by the contract but would probably get the same pay increase.
Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com. Reach Derrick DePledge at ddepledge@honoluluadvertiser.com. Or reach either at 525-8070.,/i>
