HawTel union rejects revised contract offer

Union workers at Hawaiian Telcom voted down an amended contract offer Tuesday in which the company softened some of the concessions it had demanded earlier.

Members of IBEW Local 1357 voted 283-216 to reject the proposed three-year agreement that called for wage increases, a reduction in paid sick leave and a higher employee contribution for health care premiums.

"Fundamental issues of takeaways — mortgaging the future to pay for today — and leadership confidence were reflected in the vote," the union’s negotiating committee wrote in a post on the IBEW’s website. "The negotiating team is reviewing all options at this time and a meeting is scheduled with the company (today) to discuss the vote results."

The negotiating committee said it took a "neutral stance" on the latest contract offer.

A Hawaiian Telcom spokesman said the company was "evaluating its options," but did not comment further.

The latest vote marked the second time in six weeks union members of IBEW rejected a contract proposal. The first contract offer was voted down by a vote of 513-85 on Oct. 31.

The company’s latest offer included a reduction in paid sick leave to 10 weeks from 26 weeks. The company’s previous contract proposal called for cutting paid sick leave to eight weeks.

Hawaiian Telcom also proposed phasing in an increase in the amount employees must contribute to their health care premium. Employees, who currently pay nothing for their coverage, would be required to contribute 5 percent in 2012 and 10 percent in 2013. Hawaiian Telcom’s previous contract offer called for workers to pay 10 percent immediately.

Both contract proposals called for 1 percent annual pay raise over three years, and a $500 bonus in each of the years.

Hawaiian Telcom last month said it earned $7.4 million in the third quarter, its third straight profitable quarter since emerging from bankruptcy last October. The third-quarter profit was up from $6.7 million in the second quarter and $5.5 million in the first quarter. It compared with a loss of $23.5 million during the third quarter of 2010 when the company was operating under bankruptcy protection.