Election year turns up
din from LegislatureThe issue: Lawmakers say
they aren't playing politics
with the hurricane relief fund.If Republicans in the state House are sincere in their declaration that politics aren't the motive in their effort to refund money to homeowners who paid into the hurricane relief fund, they should come up with a plan to eliminate the problems that Democrats say refunds would present. By the same token, if those issues prevent them from agreeing with Republicans, Democrats also should seek solutions.
House Republicans have dug in their heels on the matter, proclaiming that although their bill has been voted down, they will continue their battle. Rep. Charles Djou (R, Kaneohe) contends that the $213 million in the fund "belongs to the people." The problem is figuring out which people.
The fund was set up to provide insurance to homeowners after Hurricane Iniki ripped through the islands and insurance companies fled the market. Djou and other Republicans argue that people who bought insurance through the fund are the rightful owners of the money. He is wrong because the fund's revenue came not only from those who purchased insurance policies, but from anyone who took out a mortgage when the fund was active as well as from insurance companies.
So, who gets a share of the action and how much? Democrats say sorting this out would be a near impossible task. However, GOP Rep. Joe Gomes vowed that Republicans "will find a way to do it because it is the right thing to do." He, too, is wrong.
Lawmakers from both parties appear to have forgotten the purpose of the relief fund. Democrats and Gov. Cayetano want to use the money to make up for projected budget shortfalls. However, the possibility of a devastating hurricane hasn't disappeared and the most prudent action would be to leave the fund intact.
Republicans say a refund of the hurricane insurance money, plus their perennial proposal to exempt food, rent and medical services from the state excise tax will stimulate the state's sluggish economy. "This is an opportunity for the House to stand up for economic stimulation and to do something for the working people of Hawaii, something dramatic that will really cause our economy to surge forward," declared Rep. Galen Fox (R, Waikiki). Drama isn't what will kick start Hawaii's economy. Fresh ideas and inventive plans are what voters are looking for and neither party has come up with any.
Instead, the public is getting an extra loud dose of tiresome political rhetoric seemingly designed for quick sound bites and campaign brochures. If lawmakers don't lower the volume and get to fixing the state's economic troubles, they have little defense against charges that election-year posturing is their true intent.
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United strike would
harm all concernedThe issue: United Airlines
mechanics have rejected a contract
and authorized a strike.ALTHOUGH United Airlines mechanics are poised to go on strike, they must appreciate the damage that would cause. The likely ensuing shutdown of the airline would be a serious setback for the nation's economy, a devastating blow to Hawaii's tourism and a shove into bankruptcy for United, 55 percent of which is owned by the employees. A strike would make no sense.
The vote by the machinists to authorize a strike as soon as next Wednesday is aimed, of course, at achieving gains at the bargaining table. If negotiators refuse to budge, the government should be prepared to exert pressure on both sides to reach a settlement, but congressional intervention should be a last resort.
Just the threat of a strike is enough to create problems for Hawaii's economic recovery effort. United has 17 flights a day between the mainland and Hawaii and one daily Japan-Honolulu flight. Many people will be reluctant to plan a United flight for their vacation plans when a strike could disrupt them.
United's 13,000 mechanics have not had a pay raise since 1994, so a large increase is warranted. An emergency board appointed by President Bush in December to help resolve the dispute called for immediate raises of as much as 37 percent. Members of the International Association of Machinists rejected that proposed contract before authorizing a strike.
Machinists opposed the emergency board's involvement and indicated they are not willing to wait until April 2003 before receiving pay retroactive to July 2000. That dispute also is complicated by wage concessions that, under the proposed settlement, would be compelled by the company recovery plan now being prepared.
This is obviously not a case of a company refusing to share its riches. United, the nation's second-largest carrier, lost $2.1 billion last year and has struggled since the Sept. 11 terrorist attacks. The airline said last month it continues to lose $10 million a day.
Both sides of the dispute seem optimistic about a settlement. They agreed to resume meeting tomorrow and are expected to remain at the table at least until midnight next Wednesday, when the current cooling-off period expires. Congress will not be in session next week but should be prepared to reconvene to extend the cooling-off period if the union refuses to postpone the strike deadline.
Congress has used the Railway Labor Act to impose settlements in rail labor disputes but never in an airline case, although the law allows it. The United dispute should not come to that, but the potential should create enough pressure on labor and management to reach a settlement.
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Published by Oahu Publications Inc., a subsidiary of Black Press.Don Kendall, Publisher
Frank Bridgewater, managing editor 529-4791; fbridgewater@starbulletin.com
Michael Rovner, assistant managing editor 529-4768; mrovner@starbulletin.com
Lucy Young-Oda, assistant managing editor 529-4762; lyoungoda@starbulletin.comJohn Flanagan, contributing editor 294-3533; jflanagan@starbulletin.com
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