HGEA frustrated over lack of progress on ‘most favored nation’
HONOLULU- Randy Perreira, executive director of the Hawaii Government Employees Association, says members are growing increasingly frustrated over the lack of progress on a ‘most favored nation’ clause contained in the union’s two year contract that began in July of last year.
“It's now led members to be concerned that this favored nation was a sham, that they were sold a bad bill of goods,” Perreira said Monday in an interview with Khon2.
Under most favored nation status HGEA is guaranteed that no other public worker union gets a better deal or more favorable treatment, considered a reward for being the first union to settle with the state in 2011.
But after United Public Workers ratified a two year agreement last November that HGEA has taken issue with, Gov. Neil Abercrombie’s administration has been in no hurry to invoke the most favored nation clause.
“The biggest challenge is that this administration has just been moving way too slow,” said Perreira.
In its contract agreement with the state, HGEA received a 5 percent across the board pay cut while UPW agreed to 14 furlough days through the current fiscal year and 13 furlough days for fiscal year 2013. Both unions received a 50-50 split on health insurance premiums, but HGEA workers will earn an additional nine days of paid leave every year.
In its attempt to invoke most favored nation status, HGEA is seeking a refund for members who paid an additional 10 percent on health insurance premiums from July 1 through December 1 of last year. During the five month period in question, UPW members paid 40 percent of their health insurance premiums under an expired contract, while many HGEA members paid 50 percent.
House Finance Chairman Rep. Marcus Oshiro believes reserves in the state’s health insurance trust fund, or EUTF, will cover any reimbursements HGEA members may be due.
“I don't think it'll be a budget buster given the current fund balance in the EUTF fund and their projections for this year,” said Oshiro, “but it may be an additional cost item for us to review and to consider this session.”
Currently, the EUTF has $9 million in reserves for active members and $96 million in reserves for retirees.
On Monday Neil Dietz, the state’s chief negotiator, met with HGEA leadership but no breakthrough was announced.
“Neil continues to have ongoing discussions with HGEA regarding the (most favored nation clause),” said Donalyn Dela Cruz, the governor’s spokeswoman. “This is a process in which he has indicated the state must ensure it is right for HGEA members and the State.”
HGEA is also demanding that members not paid through the state’s general fund be exempt from pay cuts, a stipulation that is part of the UPW agreement. Also at issue are salary schedules used to calculate pay cuts as well as overtime for HGEA workers.
“By not impacting the salary schedules then (HGEA) employees who retire will see that their pay has not been adversely affected,” Perreira explained.
For HGEA members who work at the county level, any reimbursement of insurance premiums would only impact about 3,200 workers in the City and County of Honolulu. Under supplemental agreements signed with Hawaii, Kauai and Maui counties, HGEA workers continue to pay only 40 percent of their health insurance premiums.
“The City is currently working with HGEA to resolve the issues relating to the favored nations provision in their contract,” Honolulu Managing Director Douglas Chin said Monday in a statement. “We are compiling the data requested by the union and will be meeting this week to resolve the outstanding issues.”Register to log on and leave a commentHave a news tip? Contact Andrew Pereira at 368-7273. Follow Andrew on Twitter at Khon_Reporter or on Facebook at www.facebook.com/AndrewPereiraKhon2
