Hawaii's top union execs got modest raises
By Rick Daysog
Advertiser Staff Writer
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The average pay of Hawai'i's top union leaders rose modestly last year as local labor organizations benefited from the strong economy and labor peace in the workplace.
An Advertiser computer-assisted study of filings by 22 major local unions and labor organizations with the U.S. Labor Department found that the average pay for the top labor executives was $124,538.90 last year, which was up 3.5 percent from the previous year's $120,289.40.
The increase was below last year's 5.9 percent inflation rate and comes as the statewide unemployment rate has dipped to 30-year lows and as membership in local unions has risen.
"Employment is high, the economy is strong so it's natural to see moderate growth in executive salaries," said Kyle Chock, director of the Pacific Resource Partnership, an advocacy group that represents building contractors and the Hawai'i Carpenters Union.
Last year, 16 union leaders received a raise while four saw a decrease in their compensation.
The increases ranged between 1.8 percent and 12.6 percent and only one earned more than $200,000 last year. Of the 22 executives surveyed, 16 took home more than $100,000.
Here are the highlights:
Saguibo was ousted in January when the union's international parent placed the local under trusteeship, alleging that local officials gave preference to friends and relatives for construction jobs and spent more than $450,000 on trips to the Philippines during a five-year period.
MEMBERSHIPS RISING
Most union leaders contacted for this story would not comment on their salaries but those who did said that their compensation was set by their union's executive board and some said the pay required approval from the rank and file. Several also noted that membership in local unions has been rising statewide.
Statistics compiled by the Hawai'i state AFL-CIO show that the number of unionized workers statewide last year rose to 169,127 from 164,691 during the previous year. Hawai'i also was the most heavily unionized state in the country last year, overtaking New York, according to www .unionstats.com, a database that collects data on union membership nationwide.
According to unionstats.com, members of local unions represent 24.8 percent of Hawai'i's overall workforce.
FAR FROM CEOS' MILLIONS
To be sure, local union heads receive far less than the heads of the state's largest publicly traded companies.
An Advertiser study in May found the average pay for the chief executives of Hawai'i's seven largest publicly traded companies in 2006 was $2.6 million.
That was slightly less than the $2.8 million paid to all 22 union leaders included in this survey and more than 20 times the average pay for a local union executive.
"That makes us look like we are underpaid," said Kinney of the Painters and Allied Trades.
Kinney said the increased pay reflects the changing role that union managers are playing.
In past decades, union executives largely handled contract talks and workplace grievances, and their relationships with management was largely antagonistic. Now, many of their duties are similar to those performed by corporate managers, Kinney said.
The mid-1990s economic downturn, when unions like the Carpenters and Painters lost more than half of their membership, prompted labor leaders to take a more collaborative role with business in their long-term planning, Kinney said.
Many unions like the Carpenters and Painters have implemented innovative work-training programs to ensure that there's a steady supply of qualified labor workers. They also established job safety programs and drug testing to prevent workplace injuries and reduce costs.
About a dozen local construction trade unions have signed a 50-year agreement with Ohio-based Forest City Enterprises, Inc. and California-based Actus Lend Lease, which are developing billions of dollars worth of military housing in Hawai'i.
The contracts all but guarantee labor peace for the duration of the construction period.
They also entered into early contract talks. For instance, the Carpenters' contract with private developers was set to expire at the end of this month but the union agreed to start talks last year and were able to wrap up a new agreement in December for a contract that runs until 2012.
"We wanted to send a message to the developers that there will be labor peace in the construction industry for years to come," said Taketa of the Carpenters union.
"We benefited from the upswing in the economy and we're doing what we can to continue to ride this wave."
Reach Rick Daysog at rdaysog@honoluluadvertiser.com.
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Correction: A chart in a previous version of this story stated that Agnes Pigao Cadiz earned $40,865 in 2005 as executive director of the Hawaii Nurses Association. She earned that amount during a six-month period in 2005.
