Thousands of public correctional, institutional and health workers will receive pay raises in the next six months under a draft arbitration award that could lead other public employees to seek similar raises.
More than 2,700 state and county employees represented by the United Public Workers will get 3.2 percent raises from January through June. UPW members had rejected 5 percent pay cuts and a greater cost share of health insurance premiums that many other public workers had accepted two years ago to help with the state’s budget deficit. Instead, they went to arbitration.
Kalbert Young, state budget director, said he will likely ask the Legislature for an $8 million emergency appropriation to cover the UPW award. An arbitration decision for public health nurses represented by the Hawaii Government Employees Association is expected in late February or early March, which could prompt another request for emergency money.
The Abercrombie administration’s two-year budget draft would restore the 5 percent that was cut from public workers’ contracts that expire at the end of June. But the unions, which are negotiating new contracts, could be emboldened by the UPW award to seek more significant raises.
Members of the UPW unit not only sidestepped the 5 percent pay cuts and will receive raises, but they have also continued to benefit from the government covering 60 percent of their health insurance premiums, while other public workers have had to pay an equal share. Most in the UPW unit work for the state, while about 150 are Honolulu emergency medical services workers.
"That $8 million is only across six months," Young said. "So when you talk about that for the next biennium, plus these guys thinking that they are going to negotiate a new contract after July 1st, and if you agree that it sets a different mark — or a different base — for other collective bargaining, that is a budget-buster."
State Sen. David Ige (D, Pearl Harbor-Pearl City-Aiea), chairman of the Ways and Means Committee, said finding additional money for collective bargaining could be a challenge given competing budget pressures.
"I think the budget, although we’re doing better, is a challenge," he said. "And the challenge for us would be to make sure that if collective bargaining agreements are arrived at that we can fund it."
State Rep. Marcus Oshiro (D, Wahiawa-Whitmore-Poamoho), chairman of the House Finance Committee, said he is concerned about both the emergency appropriation for this fiscal year and the effect of labor costs through the next two years. He said the UPW award could be the "new base" for other unions.
"This kind of sets the floor for all other bargaining units across all jurisdictions," he said. "It’s going to set a higher bar than the (government) employers may have wanted."
