Amfac's plan for Kauai sugar includes layoffs

The company says it's essential for survival

By Trish Moore
Kauai correspondent

LIHUE - In hopes of keeping sugar production alive on Kauai, Amfac/JMB Hawaii Inc. and the sugar workers union have drafted a proposal to eliminate 72 jobs and reduce workers' pay by 10 percent.

The Imua plan was developed through brainstorming sessions over the last three months between the company, union officials and rank-and-file sugar workers, said Amfac/JMB President Gary Grottke.

The firm, with 15,000 acres of sugar on Kauai, will begin formal negotiations on a contract with the International Longshoremen's and Warehousemen's Union next month and put the plan to a membership vote in January, Grottke said. The current contract expires Jan. 31.

"This is not the final resolve," said ILWU Local 142 Vice President Robert Girald. "Amfac made it clear they need to curtail their losses." At the meetings, the participants "looked at possible scenarios to break even," he said.

Although Imua proposes to reduce the work force from 462 to 390, the plan will save sugar jobs on Kauai, Grottke said. "Without it or a similar plan, there will continue to be a downward spiral in sugar profits that could eventually lead to closing down all sugar operations."

A similar plan last year was rejected by workers.

Grottke said the workers had direct input into this year's plan and hopes that will help get it accepted. In addition to the job cuts, key elements of the proposal are:

A 10 percent pay cut for workers. In return they get a one-third stake in profits.

Workers would be salaried, but weekly hours would fluctuate from zero to 60 hours, depending on the need. During a harvest they work long hours and in the weeks after heavy rains they work very little or not at all.

Workers would receive cross-training in all aspects of sugar production.

Grottke said the proposal is not an ultimatum, but "it's fair to say we're running out of ideas." If the plan is adopted it will allow the company to move into a comfortable level of profitability, he said. "We wouldn't be teetering on the edge every year."

The company has 15,000 acres planted in sugar on Kauai.