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UPW Unit 1,
state settle; 11%
pay raise

One city official warns that
the cost could mean higher
property taxes

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By Gordon Y.K. Pang
Star-Bulletin

Gov. Ben Cayetano believes a contract reached with United Public Workers Unit 1 "sets a pattern and a tone for future negotiations with other unions."

The state still must reach and fund contracts with teachers, University of Hawaii faculty, another UPW unit and the Hawaii Government Employees Union.

Meanwhile, a city official warned that the UPW contract could lead to an increase in property taxes.

The tentative agreement announced yesterday averts a strike by some 8,700 state and county refuse, waste-water, custodial and road crew workers.

If Unit 1 workers approve the agreement, they will receive raises every six months from July 2, 2001, to June 30, 2003, for a total raise of 11 percent.

In exchange for the pay increase, the union agreed to scaling back vacation time and sick leave for new hires.

The agreement is more than the 9 percent raise the state and counties originally proposed. UPW was seeking raises similar to the 15 percent over four years that the Hawaii Government Employees Association received as part of an arbitrated settlement.

The Legislature has not funded the HGEA raises, and the Hawaii Supreme Court is being asked to decide if the raises can be rejected.

Cayetano said the adjusted vacation and sick leave schedules will "reap savings for the state in the future."

Cayetano thanked union leaders for "their openness in looking at the state's financial condition and recognizing that the state has bargained in good faith."

Under the agreement, UPW workers will get no raises the first two years of what actually is a four-year contract, retroactive to July 1999.

They will receive raises every six months beginning July 2, 2001 with 2 percent, then 3 percent, 2 percent and 4 percent.

The entire package will cost the state about $22 million over two years.

The new contract would provide 12 to 24 days of vacation leave earned on an increasing scale based on years of service. Currently, workers get 21 days regardless of years of service.

Further, the contract would give new workers only 15 days of sick leave annually and gradually work up to 21 days.

Currently, all workers get 21 days regardless of how long they have been with the government.

The union also agreed to a "two-strikes-you're-out" drug-testing policy that will allow for the firing of commercial drivers or probationary employees who test positive for drugs twice.

"All the counties have agreed" to the contract, the governor said.

Honolulu Managing Director Ben Lee, in a written release, warned that property tax rates may have to be raised to meet the contract costs.

He said he believes that covering the contracts for the UPW and other unions will cost the city $30 million in the upcoming fiscal year alone.

That would be in addition to about $28 million in additional retirement benefits due this year, Lee said.

"I cannot see how we can keep real property taxes at today's rates and still pay for these salary and benefit increases."

UPW Executive Director Gary Rodrigues said a ratification vote will begin next week.

He predicted that approval would be higher than the 92 percent of workers who voted in October to authorize a strike.

Rodrigues said a key reason he agreed to the concessions for new hires was that the contract would allow for current employees to keep existing vacation and sick leave benefits.

Rodrigues said he believes UPW's Unit 10 can reach a similar contract covering 2,600 correction officers, practical nurses and other institutional employees.