The teachers union has turned down a settlement offer that would have included the restoration of a 5 percent wage cut, 2 percent raises each year of the 2013-15 contract and $2,500 bonuses for new teachers who successfully complete probation.

The state and the Hawaii State Teachers Association will return to the bargaining table in January.

The union opted Monday night to return to talks rather than accept the offer.

The rejection means a protracted labor dispute with teachers will continue through the new year, barring a sudden change.

Following the union’s vote, the state proposed to resume negotiations on Dec. 19, but HSTA said it was not available until Jan. 11, the Department of Education said.

On Monday night, state officials expressed disappointment — and more than a little frustration — over the union’s decision not to accept the over.

"They were unwilling to accept our proposal, which we felt was generous," Board of Education member Jim Williams said. "It was a sincere offer. Regardless of your opinion, you would say it’s a fair and reasonable offer."

In a news release, schools Superintendent Kathryn Matayoshi said the state remains "committed to negotiating to reach a resolution that results in a ratified contract."

In a statement, HSTA President Wil Okabe said the state’s offer "paled in comparison to the over $100 million in wage losses teachers struggled to endure as they helped the state over the past 3 1/2 years move toward economic recovery."

The statements were in contrast to the optimistic tone the state and union struck just a few days ago, when both sides characterized negotiations as "productive."

He also said the state’s offer required teachers to take a "blind leap of faith" by agreeing to a revamped teacher evaluation system yet to be developed.

He said the union was willing to continue mulling over the offer in future negotiations but that the state withdrew it, saying it had expired.

Negotiations on a 2013-15 contract began Nov. 14, and the two sides sat down for the second time Dec. 5.

The talks come as teacher protests over the lack of a labor agreement continue to grow.

Hundreds of teachers at more than 85 schools have participated in "work to rule" protests — that is, working only the seven hours (from 8 a.m. to 3 p.m.) they are required to under contract.

The fourth day of protests in four weeks is set for Thursday.

During the protests, which occur before and after school, teachers gather on sidewalks to wave signs instead of supervising student clubs, reaching out to parents or conducting myriad other activities.

Teachers have been working under the terms of an imposed contract offer since July 1, 2011. The "last, best and final" offer, which expires June 30, included wage reductions and higher medical premiums.

According to the state, the comprehensive 2013-15 offer:

» Included $49 million in new compensation, including 2 percent raises in each year of the contract.

» Had the details of an annual evaluation based on a four-point scale, half of which was based on teacher practice, the other half based on student learning and growth. The offer also called for the creation of an advisory committee to review the new teacher evaluation system, which is being piloted now.

The state is piloting new evaluations for teachers and principals at 82 schools, and by next school year plans to take the system statewide. Ratings would officially be tied to actions in the 2014-15 school year.

» Made clear that the new evaluation would not be immediately tied to pay. Teachers would need an "effective" rating or better in the 2014-15 school year, however, to receive any pay increases put in place in 2015-16 or later.

» Provided additional support, compensation and incentives for professional performance, including "future financial recognition" for teachers rated as "highly effective."

» Lengthened the probationary period for new teachers to six semesters from four but included a $2,500 bonus for teachers who successfully completed probation to earn tenure.

Statement from HSTA, Dec. 10, 2012

Press Release: State Urges HSTA to Make Contract Proposal