Hawaii Gas union workers have voted to approve a three-year contract, ending a two-week strike across the state.
The utility announced Wednesday evening that the new contract includes a 15% increase in wages over three years and a flat rate for medical insurance that represents about 10% of the employee medical insurance premium cost. About 90% is covered by the company.
Hawaii Gas initially offered a 10% wage increase, while union workers, represented by Hawaii Teamsters and Allied Workers, Local 996, proposed a 30% increase.
“We are very glad to have come to an agreement with the Teamsters,” said Alicia Moy, president and CEO of Hawaii Gas, in a statement. “This situation has been tough for everyone, and we know we will need to find ways to heal and come back together as one ʻohana. We look forward to welcoming everyone back to work and servicing our customers. We appreciate our customers’ patience as we dealt with the issues that arose during the strike and are committed to getting operations back to normal as soon as possible.”
The 217 unionized workers with Hawaii Gas began a statewide strike June 1 following weeks of unsuccessful contract negotiations.
“We believe this agreement is a win for everyone involved,” Hawaii Teamsters President Kevin Holu said in a statement. “Our members will be able to return to work with the knowledge that their contributions are valued and compensated fairly and Hawaii Gas can continue providing vital services to the people of Hawaii.”
Since the beginning of the strike, union workers have protested at various Hawaii Gas locations, reportedly blocking employees and delivery trucks from entering or leaving the sites. Nonunion Hawaii Gas employees, meanwhile, were accused of taunting union workers.
The strike also had led to service issues to customers, in particular restaurants on Hawaii island. Some businesses ran out of propane for their cooking equipment in the middle of the day and had to temporarily shut down. Commercially, propane is often used for cooking and heating water at restaurants and hotels.
Residential customers were also affected, with reports of home gas tanks not being filled and propane shortages at hardware stores like City Mill.
“We know that our decision to strike impacted many people, and we appreciate the patience and understanding shown by the public,” Holu said.
During the strike the utility began giving its commercial customers waivers to allow other gas companies to fill their gas tanks. Contracts between gas companies and their customers usually prohibit this, although increased publicity and pressure during the strike may have prompted Hawaii Gas to allow it.
“We are confident this agreement is in the best interest of our employees, customers and the entire community,” Moy said in a statement. “We appreciate the incredible amount of hard work that our dedicated team put in over the past few weeks to ensure we could keep operating, as well as the support and patience of our customers and the community.”
Hawaii Gas has about 70,000 customers and is the state’s only utility gas provider, which means it uses nearly 1,000 miles of underground pipelines to carry gas directly to homes and businesses and is regulated by the state Public Utilities Commission. Nonutility gas companies and Hawaii Gas also provide gas by delivering them to customers via trucks.
REACHING A TRUCE
Highlights of the Hawaii Gas contract ratified Wednesday by Hawaii Teamsters and Allied Workers, Local 996, union workers:
>> Contract term: Three years
>> Strike duration: 14 days
>> Wages: 15% increase over three years
>> Medical insurance: Flat rate representing about 10% of premium
>> Union employees: 217
>> Total workforce: 359
>> Customers: About 70,000
