Posted on: Wednesday, February 2, 2005

Hawaiian reaches pact with 3rd union

By Dan Nakaso
Advertiser Staff Writer

Hawaiian Airlines has moved another step closer to emerging from federal bankruptcy protection with the ratification of a new, three-year agreement between Hawaiian and the union representing reservation and customer service agents, ramp workers and accounting and finance employees.

The new contract was approved Monday after members voted down an earlier proposal Jan. 20.

Hawaiian's new contract with the International Association of Machinists District Lodge 141 increases members' medical premiums but does not require them to pay out-of-pocket expenses for healthcare visits, union leaders said.

Randy Kauhane, assistant general chairman of IAM District Lodge 141, declined yesterday to describe the details of the new contract, saying he did not want to influence negotiations between Hawaiian and two of its other unions.

But Kauhane said the new contract does not "ask for concessionary wages" and removes the previous sticking point of requiring employees to pay out-of-pocket costs for healthcare.

"The medical coverage has been an issue with all of the labor groups," Kauhane said.

More than 55 percent of the union's 1,329 members turned out to vote Monday, he said. Of those who voted, he said, 64 percent approved the new contract, which will run from March 1 to March 1, 2008.

Hawaiian filed for federal bankruptcy protection in March 2003, and the company has said that it cannot exit bankruptcy protection until new contracts are in place for all of its unions.

"Together, Hawaiian and the IAM negotiated a contract that serves both the airline and the employees," Josh Gotbaum, Hawaiian's bankruptcy trustee, said in a statement. "We've taken a huge step toward getting Hawaiian out of bankruptcy."

Monday's vote means that Hawaiian has successfully negotiated new contracts with the Transport Workers Union, which represents Hawaiian's dispatchers, the Network Engineering Group and IAM District Lodge 141.

New agreements have yet to be reached with IAM District Lodge 142, which represents 376 aircraft inspectors, mechanics, line servicemen and cleaners, and with Hawaiian's pilots.

A tentative agreement with Hawaiian's flight attendants has yet to be voted on.

Last month, Hawaiian asked U.S. Bankruptcy Judge Robert Faris to extend and modify a labor contract with its pilots' union. A hearing is scheduled for Feb. 14 and 15.

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