Sen. Daniel Inouye criticized Gov. Linda Lingle’s plan to lay off state workers and Lingle responded that Inouye’s comments were inappropriate.

The state this morning notified the United Public Workers and the Hawaii Government Employees Association that more than 1,100 of their members face possible layoffs in 90 days. Lingle said a budget deficit forced her to give notice of layoffs even though she would prefer to save money by having all state workers take three furlough days a month.
“I remain hopeful that we will not have to undertake large-scale layoffs,” Lingle said in a statement. “I continue to believe furloughs or salary reductions are preferable to having some employees lose their jobs. My administration will continue to work tirelessly to achieve a resolution of collective bargaining negotiations.”
Union leaders were not immediately available for comment.
But Inouye questioned whether Lingle needs to lay off employees.
“Over the months that I have watched this dispute unfold ... I had hoped that cooler heads would prevail and return to the bargaining table to negotiate a solution," Inouye said. "Unfortunately that has not happened. Why should there be layoffs? The program proposed by labor unions saves money and assures that state services continue.”
The labor unions representing state workers last week offered to take a 5 percent pay cut.
"Workers are usually laid off if they are no longer necessary. In a period of economic crisis of this nature, you need government employees to assist others."
Inouye said tough times require all parties to "put our minds together, set aside differences and work out a solution" rather than "politically punish or politically enhance a group."
Lingle responded to Inouye's comments in a follow-up statement that said, “Sen. Inouye’s comments are inappropriate, factually inaccurate and misleading. By attempting to insert himself into the labor negotiation process, Sen. Inouye is unnecessarily creating a distraction from the fact that without the implementation of labor savings, the state’s fiscal crisis will continue to deepen. This is not a political issue, as the senator hopes to lead the public to believe, but rather a fiscal reality that we must address.
“The facts are: Today my administration notified the United Public Workers Union and Hawai‘i Government Employees Association of possible reductions in force of state employees. The notification is the first step, as required by law, in the reduction in force procedures.
“It is also important to note that the 5 percent reduction offered informally by the unions equals $203 million over the biennium. Although EUTF benefits are still being negotiated, if the percentage stays the same as today (60/40 split), the cost is $94.3 in the biennium. This amounts to only about $100 million in labor savings, which is not nearly enough to balance the budget as required by the Constitution, because our current shortfall is $786 million.
“I continue to believe that furloughs are preferable to layoffs and my administration is continuing to negotiate with the public employee unions to achieve a resolution.”
Based on the outcome of the initial set of reductions, the state said it will determine if more layoffs are needed.
The state began notifying some workers Friday that they might be laid off, a move one union leader called improper.
The state must give unions a 90-day notice of layoffs. After that list is submitted, the unions can consult with the state before layoff notices go out.
Lingle is scheduled to resume talks with the unions this week, perhaps as early as tomorrow.