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State, county meet
to decide HGEA
pay raises

Gov. Cayetano has said that
the state cannot afford the raises

By Richard Borreca
Star-Bulletin

Next week, state and county officials plan a summit meeting to decide what to do about a 15 percent wage settlement for the state's biggest public-employee union, the Hawaii Government Employees Association.

According to a highly placed administration official who asked not to be identified, the state is exploring whether it has to fund the pay raises. Because the award is for four years, the state is questioning whether it can require next year's Legislature to pay for future pay raises.

The state has 10 days to submit the arbitration award to the Legislature. According to the state, the award must be before the Legislature by the first day of May.

If the state actually waits that long to submit the pay settlement, the Legislature, which is scheduled to adjourn the next day, would not have enough time to approve it, without going into an extended session.

Gov. Ben Cayetano has repeatedly said the state could not afford the pay raises.

According to state law, the HGEA cannot strike, but labor contract differences are sent to a three-person arbitration panel.

That panel awarded raises of 4 percent and 5 percent across the board, plus other increases.

"Based on the panel's ruling of a four-year contract, the final year would result in the state facing a deficit of more than $200 million," Cayetano said.

So next week, the governor is expected to meet with the four county mayors, plus representatives of the Board of Education, the Board of Regents and the Judiciary, who also have HGEA employees.

According to state law, management is required to send the settlement report to the Legislature and in the transmittal letter cannot recommend that it be rejected.

Legislators, however, are already aware that the Cayetano administration doesn't feel the state can afford pay raises now.

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http://www.hawaii.gov/