Pay raises of 5 percent designed to remedy problem of ‘inversion’

Mayor Kirk Caldwell, City Council members, city department heads and other appointed employees will likely get 5 percent raises July 1 under recommendations issued last week by the city Salary Commission.

The Council can decide to reject the pay raise plan in its entirety or in part, but must do so by a three-fourths vote of its nine members.

In its report to the Council, the commission said that “inversion” of salaries continues to be a problem in some departments. Inversion occurs when an agency’s highest-paid exempt management subordinates whose salaries are tied to collective bargaining increases make higher salaries than their department and deputy department heads.

The disincentive caused by being promoted to the top posts historically discouraged senior staff in certain agencies — including the Police and Fire departments — from applying for those jobs.

“The 2016 Salary Commission … believes that remedying the inversion incrementally over the years is in the best interest of the City and County of Honolulu,” the report said.

The report also calls for eliminating a two-tier salary structure for staff attorneys in the Department of Corporation Counsel that is based on seniority. Corporation Counsel Donna Leong had submitted testimony on behalf of her 47 deputies seeking to eliminate the structure, created by the 2009 Salary Commission, arguing that it creates artificial salary differences and is ineffective.

Ray Soon, Caldwell’s chief of staff, had urged the commission to recommend raises of at least 2.5 percent for directors and deputies.

All seven members of the commission voted to support the recommended plan April 19. Caldwell, in a statement, said he supports the proposed increases.