Maui hospital settlement veto likely to stand
Lawmakers are tentatively planning to close out their special veto override session Monday without taking any further action on a proposal for special severance payments and retirement benefits for the Maui hospital workers who will lose their state jobs when Gov. David Ige’s administration privatizes three hospitals in Maui County.
If lawmakers leave the state Capitol without acting on the issue, that would effectively kill the severance and retirement proposals agreed to by the state Legislature and the Hawaii Government Employees Association during the regular session this spring. Those proposals were included in Senate Bill 2077, which Ige vetoed last week.
Lawmakers convened again on Tuesday in the veto override session in an effort to approve a new version of the bill that would be more appealing to Ige, but negotiations over a new draft haven’t advanced to a point where the Legislature has a specific proposal it can act upon, according to lawmakers and others familiar with the effort.
The Ige administration has the option of calling lawmakers back into a special session later this year if an agreement can be reached later with the public worker unions over the Maui privatization, which would allow Kaiser Permanents to operate what are now three publicly run hospitals.
Randy Perreira, executive director of the HGEA, described the Ige team as “incompetent fools,” and said he refused to meet with Ige last week to discuss the issue because “we knew the governor is not looking at something that we would view to be equitable for the employees.”
HGEA is “very, very seriously” considering filing a lawsuit over the privatization effort similar to one filed by the United Public Workers union, Perreira said.
Don't miss out on what's happening!
Stay in touch with breaking news, as it happens, conveniently in your email inbox. It's FREE!
“We’re not looking to be obstructionist to Kaiser, but it seems that being obstructionist is the path to getting David Ige’s attention,” Pereira said.
That UPW lawsuit alleges the administration’s Maui privatization effort violates its state contracts with the unions that extend until June 30, 2017.
The 9th Circuit Court of Appeals in May issued an injunction in the UPW lawsuit that temporarily halted the privatization effort. Kaiser was scheduled to take control of the hospitals on July 1 but has been unable to do so because of the injunction.
Ige’s office has been in closed-door negotiations this week with UPW representatives to try to develop a severance package for the UPW Maui hospital workers that would persuade that union to agree to settle its lawsuit.
Ige on Friday met with lawmakers to brief them on a tentative agreement reached with the UPW on those issues that included severance payments, but lawmakers told Ige they want the HGEA included in any such agreement, according to officials familiar with those talks.
Ige’s chief of staff, Mike McCartney, is “unable to make any comment at this time” about lawmakers’ plans or the ongoing settlement negotiations, according to an Ige administration spokeswoman. A spokeswoman for the House Democrats also declined comment.
Lawmakers last year authorized privatization of Maui Memorial Medical Center, Kula Hospital &Clinic and Lanai Community Hospital, and the state reached an agreement in January to have Kaiser Permanente operate all three.
The hospital deal would be the largest privatization of public facilities in state history, and Ige has predicted it will save the state $260 million in hospital subsidies over the next decade.
Other state-run hospitals are considering privatization, and the public-worker unions that represent about 1,400 employees at the Maui hospitals have fought the hospital privatization effort. Many or most of the hospital staffers are expected to continue working at the hospitals for Kaiser, but they will no longer be state workers.
Perreira said the proposed severance package for Maui workers incorporated into SB 2077 uses the same formula that was included in a package of “civil service reforms” lawmakers passed in 2000 during former Gov. Ben Cayetano’s administration. “This is the formula they came up with. We didn’t concoct it, we just copied theirs,” Perreira said.
The union also wanted a retirement “bonus” to help union members who are almost qualified for retirement to secure their pensions and other benefits. However, “it is our understanding that the governor would not agree to any kind of retirement benefits, so he’s going to screw these people out of 20-plus years of employment and whatever they’ve invested in state government,” Perreira said.
Perreira said state Director of Finance Wesley Machida is “vehemently opposed” to any early retirement benefit, which means “one man is dictating public policy for the state of Hawaii, and that’s Wesley Machida.”
“Our upset with the governor is at this point immeasurable, because these are people who’ve dedicated their careers to that hospital or to the three hospitals,” Perreira said.
17 responses to “Maui hospital settlement veto likely to stand”
Leave a Reply
You must be logged in to post a comment.
Randy Perreira and HGEA are a parasite sucking on the blood of it’s host, the Hawaii taxpayers.
Ige should executive order that union dues are no longer taken out of State paychecks. Make the unions collect their own dues.
But not to worry, those slug legislators will have a special session (paid for by the taxpayers) and will grant the union whatever they want. As usual.
Pereira, “incompetent fools”, it takes one to know one!
Randy is right.
This Governor has brought forth a season of ego, ignorant arrogance, cowardice, and reckless disregard that has been hidden this long by consistent passive aggressive communication.
If you disagree. That is fine, but keep in mind that it took HGEA this long to see it.
Can the State cancel this sale to Kaiser?
Looks like we’ll have another one-term governor after the 2018 election.
Maybe that’s all he wanted? Could be just a selfish ego trip? Referred to as “Gov” for life?
Maybe not. The Union vote is strong but just maybe the ordinary citizens will step up and vote for him. Before I jump, I want to see the opposition in the primary.
I doubt it. He is Ige-noramous the one-term Gov like the guy he replaced – deers lost in the headlights!
It should stand and Perreira should just cut his losses and move on!
Glad to see Gov. Ige has the guts to take a position on this difficult issue.
Sounds like you are a state employee…entitled to pay for life generation. FOOL!
According to Perreira the workers should be able to get more out of the sale than if it didn’t happen. That would be fine if it was his money – but not from my pocket. Ige is doing the right thing.
Kudos to B&F Director Wes Machida for having the guts to speak the truth. The growing pension liabilities of public employees will ultimately be their own worse enemy as more general fund dollars get diverted to fund the ERS and EUTF. The old legislative strategy of kicking the can down the road won’t work any more. Suck it up guys and do the right thing.
Randy Perreira only wants the 1,400 members to continue paying union dues so his paycheck can remain unchanged! That is the mentality of unions…dues are their lifeblood for himself and his staff.
You sound like you have a small mind, feet, hands…
No more taxpayer money to these state workers period.