UPW raises to cost
state $31M

The city must pay another
$10.6M toward the new deal

The collective bargaining agreement reached with the nearly 9,000-member United Public Workers union will cost the state about $31 million over two years and the city about $10.6 million.

The agreement gives Unit 1 and Unit 10 workers across-the-board raises that average about 5 percent for each year of the two-year agreement.

Officials said the UPW pay raises are comparable to what white-collar workers represented by the Hawaii Government Employees Association received, except that HGEA employees also have incremental increases along with across-the-board pay.

Unit 1 includes custodians, groundskeepers, refuse collectors and other state and county blue-collar workers, while Unit 10 includes emergency medical technicians, licensed practical nurses and correctional officers.

UPW members are scheduled to begin the ratification process this morning.

UPW State Director Dayton Nakanelua did not return a call seeking comment.

State lawmakers have set aside $9 million in the fiscal year beginning July 1 for the UPW raises and $21.9 million for the following year.

The cost to the city is estimated at a little more than $3 million for the first year and $7.6 million for the second year.

Hawaii County had budgeted an increase in pay for its roughly 360 UPW workers, Mayor Harry Kim said.

"We'll be fine," he said.

The cost of the settlement over two years will be about $1.5 million, Kim said, out of a total 2005-2006 budget of $277.5 million.

In submitting his budget proposal in March, Kim noted that Hawaii County had emerged from an economic slump and was enjoying "economic prosperity" in both the private and public sectors.

Hawaii County's Civil Service director Michael Ben was equally optimistic. "We can afford it," he said.

Honolulu, however, may have a more difficult time.

City Council Budget Chairwoman Ann Kobayashi said she had not yet seen the costs associated with the UPW agreement, but with all the union contracts settled, the Council could better shape the budget.

"It's not as bad as we thought, because (the administration) had budgeted for it," Kobayashi said, although it's not yet known if the budget will come up short.

Kobayashi said she also believed she might be able to give some form of property tax relief. But all this may require additional cuts to the budget and more revenue, she said.

Kobayashi said she believes that with all the counties having difficulty filling certain vacancies, and some employees stretched thin because of position cuts, the raises will help. "It'll definitely make things better," she said.