Management, labor must focus on steadying jobs

From plantation roots to hotel branches, from private to public sector, from employer to employee, Hawaii’s workforces are diverse, complex and dynamic. And it’s all brought into starker relief against today’s backdrop of fiscal difficulties, job struggles and an unstable economy. In honor of Labor Day, the Star-Advertiser asked a trio of local experts to reflect on the status of labor in Hawaii today.

Like the labor movement in Hawaii, the Hawaii Employers Council has its roots in Hawaii’s plantation economy. Established in 1943 as an organization of Hawaii employers, HEC’s mission has been to promote collaborative relationships between employers and employees, and to aid employers in developing productive and committed workforces. We honor the achievements of organized labor on this Labor Day.

In reflecting on the path the labor movement has taken from the ’40s to the present, it is obvious that the conditions prompting the rise of organized labor are very different from today’s work environment. Employers must comply with an "alphabet soup" of federal laws such as the ADA, ADEA, COBRA, ERISA, FMLA, FLSA, GINA, HIPAA, LMRA, NLRA, OSHA, Title VII, etc., as well as state laws regulating everything from the payment of wages to drug testing. Through an increasingly complex web of federal and state laws, government has almost supplanted the role of unions in improving working conditions and ensuring workplace equality.

In addition, heavily unionized sectors such as manufacturing, construction and agriculture have shrunk or moved offshore, while non-unionized, service-oriented and information-based industries have grown. While our parents may have retired after 30 or more years with the same company, the average 20-year-old entering the workforce today will have held, on average, 11 different jobs by age 42. In a society that celebrates creativity, autonomy and individual achievement, employees often value merit-based rewards rather than seniority, and flexible working conditions rather than job security.

The historical decline in union membership reflects these economic and demographic changes. Critics of organized labor allege that union objectives have failed to evolve with the times. Faced with hurricanes, tsunamis, supply chain disruptions, global competition, terrorist attacks, financial market crashes, regime changes, and most recently a national debt crisis, businesses must quickly adapt or perish. Employers need the flexibility to rapidly expand and contract their workforces, initiate new lines of business while closing unprofitable ones, and maintain a workforce that is accustomed to accelerating changes in technology. If organized labor is dedicated to economic growth and job creation, it must do a better job of aligning its objectives with those of the enterprises who employ its members.

Although Hawaii has historically been a state with one of the highest rates of union membership in the nation, we have, in the past few decades, avoided much of the contentiousness marring labor relations on the mainland. Nearly all businesses here recognize that their success depends on a workforce that is paid competitive wages, treated fairly, trained properly and provided with safe working conditions. The Hawaii Employers Council has worked to aid local businesses in achieving those objectives, and to negotiate fair contracts that promote industrial peace.

More recently, however, the faltering economy has created a tense labor-relations climate. Employees in the private sector have endured round after round of layoffs along with wage and benefits cuts. Many private sector workers feel that public employees should share in the collective fiscal pain. State governments across the country have either implemented (as in the case of Wisconsin) or are considering changes to public sector collective bargaining laws. In the past few months, unions have pushed the Obama administration to propose new federal regulations that would drastically alter the balance of power in the private sector in favor of organized labor.

Rather than passing new laws, or relying on shifts in the political winds, however, management and labor need to focus on the more pressing issues of job creation and steady economic growth. The challenge facing unions is in finding ways to help employers succeed in this difficult economy, without compromising representation of their members. Bargaining strategies used during boom times don’t work in today’s economic climate. Now, more than ever before, labor and management must work collaboratively to find solutions that ensure their enterprises can weather the economic storm. Those who have chosen this course fully appreciate that painful sacrifices may be required in order to improve their chances of surviving long enough for their organizations to reap and share the rewards when the economy improves.

Tim Ho is president and CEO of the Hawaii Employers Council.