It’s among the first steps in the state making good on an HGEA’s "favored nation" contract clause giving HGEA workers parity with any union that got a better deal.
In this case, March 1 marks the end of a 5 percent labor cost savings to bring HGEA workers on par with their UPW counterparts in several departments.
"What the state has agreed upon at least initially would be what we characterize as the no brainers, what you clearly agreed upon with UPW should be applying to us under the favored nation provision," said HGEA Executive Director Randy Perreira.
That means all HGEA staff at Department of Hawaiian Home Lands and Department of Transportation, and some HGEA in the following departments whose positions are paid for by a combined dozen special or revolving funds:
Agriculture: Animal Quarantine Holding Facility, Animal Quarantine Special Fund, Irrigation System Revolving Fund, and Waiahole Water System Revolving Fund;
Accounting and General Services: Stadium Special Fund, State Motor Pool Revolving Fund, State Parking Control Revolving Fund, and Surplus Property Revolving Fund;
Business Economic Development and Tourism: Foreign Trade Zone Special Fund, and Natural Energy Lab Special Fund; and
Land and Natural Resources: Boating Special Fund, and Special Land & Development Fund.
Special-funded UPW colleagues at these same departments and divisions were exempt from 5% labor savings when UPS’s contract was finalized, and HGEA’s favored nation clause guaranteed equal treatment.
“There is no state general fund impact because the sources of revenue that pay for these different services come primarily from the federal government or other non general fund sources," Perreira said.
“All of these funds are public funds,” said House Finance Chairman Marcus Oshiro. “Whether they’re special funds, revolving fund, they all belong to the taxpayer, so there is an effect upon the expenditures of state public monies."
The total pay-differential tab from March through the end of the fiscal year June 30 is not yet known. For instance, Department of Agriculture has just 19 such employees and it will cost just $13,000 more now through June, money they say their special funds have on hand. Still being negotiated is how to make-good on pay differentials for these same employee groups from July 1 through Feb. 29; and how to handle departments like DCCA where they are completely special- or fee-funded but don’t have UPW colleagues to point to.
But the bigger state bills, and benefits to HGEA as a whole, are yet to come when the rest of the favored-nation parity is finalized. A big one: health premiums, since UPW paid a smaller — 40% instead of 50% of premiums — while negotiating from July through November, while the HGEA had moved to the 50-50 split, at least $115 difference per employee per month.
“It’s millions of dollars just for the change up of the health fund between the 50-50 split and the 60-40 split,” Oshiro said, “so it’s a substantial amount of money. I think north of $5 million is a safe bet."
Oshiro said any current fiscal year expenditures not appropriated would have to come from an emergency request from the governor.
“Negotiations with HGEA are ongoing,” Gov. Neil Abercrombie’s spokesperson Donalyn Dela Cruz told KHON2 in a statement. “We are pleased that we are making progress but are not prepared to discuss any details as they are pending.”
"Whether it was the governor, legislators or the mayor talking about the so-called shared sacrifice, we were willing to come to an agreement early under the premise our employees would be treated equally with others,” Perreira said.
Also effective Thursday, March 1, all HGEA state and county workers’ salary schedules in the state departments, Judiciary, University of Hawaii, Department of Education and the City & County of Honolulu will revert up to June 30, 2009 levels. It’s not a pay hike, but any premiums like overtime, temporary assignment, call-back, differential pay, and vacation payouts for those retiring or leaving state jobs will be 5% better.
Still being negotiated:
· How to balance the UPW and HGEA pay vs. furlough give-backs. In the original contract, HGEA took a 5% pay cut and got 9 paid days off. UPW gave up 5% in labor savings but did so through 13 days of directed leave without pay this fiscal year and 13 next fiscal year. HGEA says because of this, its union members are entitled to four more paid supplemental days off by June 30 taken at the employee’s discretion.
· 5% pay restoration for special-funded positions and departments in which there are no UPW employees, and any remaining 100% federally funded HGEA positions not yet covered in the March 1 restoration list.
· Retroactive compensation differential for special-funded positions from July 1 through February 29.
· Coverage of the health premium differential 60-40 vs. 50-50 for a five-month period.
See the original article at: KHON2 Developing Stories
