City scrambles
to fund raises

An arbitrated pay increase for
the HGEA was higher than
budgeted, a city spokesman says

City officials will gather tomorrow to figure out how they'll shift resources or cut programs to pay for the arbitrated raises that are higher than what was budgeted, city spokesman Bill Brennan said.

Informational meetings scheduled The Hawaii Government Employees Association has scheduled a series of statewide informational meetings to provide details on its recently announced arbitration award. The arbitration award is binding and not subject to ratification by union members. The meetings are expected to start April 26 on Oahu. Some raises will take effect July 1, but the first across-the-board increase will show up on paychecks Oct. 1. Associated Press

Earlier in the year, Mayor Mufi Hannemann set aside funds in the budget for "modest pay raises" -- of between 2.5 to 3.5 percent per year -- for Hawaii Government Employees Association members and other city workers, Brennan said.

But HGEA's arbitration award, announced Friday, calls for raises averaging 5 percent in each of the next two years.

The union, the state's largest, represents about 23,000 white-collar state and county workers.

"Now that we know what the arbitration award is," Brennan said, "the administration will have to work closely with the City Council to see how and where we can come up with some additional funding to cover of the cost of the award."

He also said funding to some programs may have to be cut.

The pay raises that the United Public Workers gets will also affect the city's budget. The union, which represents about 9,000 blue-collar employees, is still negotiating with the state and counties, but may ask for similar raises.

An official with the union could not be reached yesterday.

Meanwhile, Hawaii State Teachers Association Executive Director Joan Husted called HGEA's award "encouraging."

HSTA is also in mediation with the state for a new contract.

In March, HSTA told the state it was seeking an average 15 percent increase in each of the next two years. The state is offering a 1.5 percent annual increase.

Husted couldn't say if HGEA's raises would be suitable for her union, adding that "we've always bargained what we thought is best for our teachers." She also said that HSTA has completed its contract bargaining with the state on "non-cost issues" and is awaiting an offer from Gov. Linda Lingle on pay raises, which is expected to come out soon.

Lingle, who has criticized the HGEA pay raises, saying they will "diminish the state's ability to provide for its people as a whole," estimated Friday that the increases would cost the state $97.3 million over two years, disputing an $82 million estimate provided earlier by the state arbitrator.

HGEA spokesman Randy Kusaka said yesterday that the larger figure likely includes raises for supervisors and managers, who are not members of the bargaining unit but who usually get similar pay raises as their union counterparts.