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The Honolulu Advertiser
Posted on: Sunday, February 15, 2009

LABOR LEADERS
Healthy pay bumps for union leaders

Hawaii news photo - The Honolulu Advertiser

Trend in ’07 isn’t likely to last as businesses cut back in slow local economy.

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Hawaii news photo - The Honolulu Advertiser
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Hawaii news photo - The Honolulu Advertiser
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Hawaii news photo - The Honolulu Advertiser
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Hawaii news photo - The Honolulu Advertiser
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Local union leaders saw healthy pay increases in 2007 but don't expect to see those kinds of raises to continue over the next few years.

An Advertiser computer-assisted study of U.S. Labor Department filings by 23 of the state's largest unions and labor organizations with the U.S. Labor Department found that the average pay for the top labor executives was $130,636, a 5 percent jump from the year-earlier's $124,399.

The increase is on par with the local inflation rate. However, several local labor leaders said they expect to see smaller pay hikes in the near future.

"It's going to be tough for everybody," said Scot Long, business manager for the International Brotherhood of Electrical Workers Local 1357, which represents Hawaiian Telcom's workers.

"I think people recognize that businesses are suffering, which will trickle down to the rank-and-file and leadership."

Typically, a labor executive's pay is set by his union's board and is linked to wages earned by the union's members.

But as businesses begin cutting back with the slow economy, local labor organizations may look to trim costs. Smaller raises, fewer perks and fewer business-related travel are likely as Hawai'i's economy slows.

In 2007, 19 union leaders received raises, three saw a decrease in their compensation and one was unchanged. Three earned more than $200,000 in 2007 while 14 earned more than $100,000.

To be sure, local union heads receive far less than the heads of the state's largest publicly traded companies.

The Advertiser reported in May that the CEOs of Hawai'i's largest public companies received an average of about $2.8 million in 2007.

That was slightly less than the $3 million paid to all 23 union leaders included in this survey and more than 17 times the average pay for a local union executive.

Lynn Kinney, business manager of the International Union of Painters and Allied Trades District Council 50, was the state's highest-paid union executive in 2007 with a compensation package listed at $286,427, a 13.3 percent increase from the year-earlier period.

But Kinney said much of the increase reflects higher union-related travel costs and that his 2007 compensation was really around $230,000.

Kinney said his position as district manager required considerable travel to the Neighbor Islands and the Mainland in 2007. The Mainland trips included meetings in Washington, D.C., and Miami for meetings of the union's international parent.

Here's how others did:

• T. George Paris, director of the Hawaii Iron Workers' Stabilization Fund, was the second-highest paid executive in the survey, thanks to a 38.3 percent increase. Paris' annual pay went to $251,371 in 2007 from the year-earlier's $181,761;

• Ron Taketa, financial secretary of the Hawai'i Carpenters Union, saw his pay increase by 2.3 percent to $210,157 from his 2006 pay of $205,518;

• Hawaii State Teachers Association President Roger Takabayashi's total compensation grew 2.2 percent to $150,664 from $147,357;

• Ronan Kozuma saw his pay increase sharply after he was elected president of the Teamster's Local 996 in November 2006. His pay rose to $112,453 in 2007 from $73,976 as a result of the election;

• Herbert Kaopua Sr.'s 2006 compensation dropped 16 percent in 2007. The financial secretary of the Plumbers Union Local 675 earned $159,727, which was down from his 2006 pay of $190,192;

• J.N. Musto, executive director of the University of Hawai'i Professional Assembly, also received a pay decrease. His 2007 compensation of $176,768 was 5.6 percent less than his year-earlier pay of $187,192;

• Eric Gill, financial secretary and treasurer of UNITE HERE Local 5, earned $68,220 in 2007, a 1.4 percent increase.

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