The cold, cruel side of business has sucker-punched former employees of defunct Island Air — hard.
First came the airline’s abrupt shutdown on Nov. 10, in which all 423 employees lost their jobs within 24 hours’ notice. Then came the realizations, several weeks later, that their last 10 days of wages, expected group health insurance coverage and even access to their 401(k) retirement funds, have also vanished.
Island Air filed for Chapter 7 liquidation bankruptcy on Nov. 13. But unfortunately, the company failed to make premium payments due Nov. 1 to its three health insurers; over $192,000 total was left unpaid. And since all employees were terminated with bankruptcy, rendering Island Air nonexistent, no group health insurance rate remains. All that makes them ineligible for COBRA coverage, which usually helps maintain group health coverage for up to 18 months after job loss.
That blow was followed by news that their 401(k) accounts were inaccessible, and nearly $36,000 intended for workers’ retirement accounts failed to make it in.
These galling turn of events is even more reason to root for some hiring successes from recent job fairs, such as Tuesday’s at Dillingham Shopping Plaza, which drew dozens of ex-Island Air workers. Especially during the holidays, the gift of a job would bring needed wages, health coverage and overall security.
One cruel irony to note: At one time, Island Air was owned by billionaire Larry Ellison, one of the world’s richest people; he later sold his controlling interest but remained an investor. For a billionaire, $192,000 in unpaid health premiums and $36,000 in limbo for 401(k)s are a mere pittance; for working stiffs, though, it can add up to a world of hurt.
Signs of growth for local milk
It’s been about 30 years since Hawaii produced all its own milk. Those days probably won’t return, but it’s heartening to see a comeback of sorts.
Through its new facility in Ookala, between Hilo and Waimea, Big Island Dairy plans to start producing, processing and selling its own brand of milk beginning in January. The milk will be distributed statewide. Big Island Dairy already sends milk to Meadow Gold, which processes and packages it under the Hawaii’s Fresh label.
An Ohio entrepreneur with a financial planning background recently announced plans to buy the state’s second-largest dairy, Cloverleaf Dairy, also on Hawaii island, with ambitions to expand it and convert it into an organic dairy. We’ll see.
Meanwhile, Ulupono Initiative has pursued efforts to start a dairy on Kauai, struggling against complaints by residents and nearby resorts, who worry about the odor, flies and possible contamination of drinking water supplies. A bumper sticker reads: “No Moo Poo in Maha‘ulepu.”
The high cost of land and feed have made dairy farming a difficult proposition here — roughly 80 percent of our milk is imported, and a gallon of milk on local shelves has become an emblem of Hawaii’s high cost of living.
So while we may not return to milk self-sufficiency, it’s hoped that these developments will increase the supply and availability of the freshest milk available — in other words, made in Hawaii.
More drama for state tax office
Who knew the Tax Department could provide so much drama? Too bad it’s not for the good — at least, not yet.
On Monday, state Tax Director Maria Zielinski suddenly resigned, after months of being embroiled in the department’s controversial, costly overhaul of its antiquated computer system. The current $60 million Tax System Modernization (TSM) project has been mired by in-fighting, with the tax employees’ union criticizing the new project managers — since July, it’s been state IT chief Todd Nacapuy and deputy tax director Damien Elefante — and demanding reinstatement of Zielinski and former project manager Robert Su to handle the conversion. But then came an unsettling October report revealing that Tax Department higher-ups had tried to influence a consultant’s verification reports, which were supposed to be independently tracking TSM’s progress.
Gov. David Ige, who had assigned Nacapuy to shepherd TSM, quickly replaced Zielinski with Linda Chu Takayama, a veteran government leader.
Now it’ll be up to Chu Takayama and team to make this drama end well. Let’s hope her vast experience in government and labor — she was director of the state Labor and Industrial Relations Department — comes in handy. Much is at stake here for Ige and the state: Individual tax filers are supposed to start using the new system next year; and an earlier modernization attempt failed after squandering $87.5 million.
