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Workers’ union sues to stop privatization of Maui hospitals

GARY T. KUBOTA / GKUBOTA@STARADVERTISER.COM / 2004
Maui Memorial Medical Center and two other state-owned medical facilities have been cleared to shift to private ownership through a bill signed Wednesday by Gov. David Ige.

The union representing workers at Maui Memorial Medical Center filed a lawsuit Thursday to prevent the state from privatizing three Maui County hospitals.

The complaint by United Public Workers against Gov. David Ige seeks to stop the implementation of House Bill 1075, which allows a private entity to manage and operate Maui Memorial, Kula Hospital and Clinic, and Lanai Community Hospital. The governor signed the bill into law on June 10.

"House Bill 1075 violates the contract clause of the United States Constitution," the complaint said. “Following such a transfer, the state will use public funds to pay for costs of operating these facilities, but the employees working in these facilities will no longer be public employees of the state of Hawaii who have civil service protections and public employee collective bargaining rights and the protections of existing collective bargaining agreements."

United Public Workers is a party to two collective bargaining agreements with the state effective from July 1, 2013 through June 30, 2017.

"House Bill 1075 substantially impairs the obligations of these pre-existing collective bargaining agreements by depriving UPW and the affected bargaining unit employees that UPW represents of all the protections and benefits of these contracts during the contract terms,” the suit said.

The Maui hospitals are in the due diligence process with both Hawaii Pacific Health and Kaiser Foundation Hospitals.

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