As if Hawaii’s costs for goods and services aren’t high enough already, the state Legislature is now advancing a bill that is likely to raise our cost of living even higher, if passed.
House Bill 714 aims to mandate which unionized workers can handle mooring lines on Hawaii’s docks — but it is bad policymaking that oversteps into industry work rules better left to labor talks. Egregiously, the bill stands to benefit a small core of unionized local dock workers — but would drive up inefficiencies and prices for goods shipped into this island state, to the detriment of all Hawaii’s residents and consumers.
Lawmakers should shelve this bill, now. The wide-ranging negative effects of HB 714 are outlined by many, including the Chamber of Commerce of Hawaii, which represents 2,000-plus companies, 80% of them small businesses.
“If this bill passes, it would lead to widespread issues in our energy supply chain and ultimately increase costs for businesses, which would then lead to increased costs to the consumers in Hawaii,” the chamber testified.
Given the limited number of local stevedoring companies, it noted, “mandating that vessels use one of these companies could create logistical challenges and delays for both the vessels and the stevedoring companies.”
HB 714 supporters are mainly labor unions, such as the International Longshore and Warehouse Union (ILWU) Local 142 and Local 100, plus the Hawaii State AFL-CIO. Some of their testimony likened this bill to the concept to “buy local” to strengthen the economy, hiring Hawaii residents to supply workforce needs.
But that’s absurd. Bloating up the docks’ workforce just to “buy local,” unnecessarily and to the detriment of efficiency and fiscal responsibility, is not good for the people of this state. And certainly not at a time when inflation here is up 3.3% from a year ago, which was already up 7.5% from the year prior. The rising cost of living is causing a population — and workforce — decline, with locals forced to leave unaffordable Hawaii.
Concerned about potentially higher fuel prices, Par Hawaii president Eric Wright testified that Par has for decades used tug-and-barge operator Sause Brothers with trained, licensed and unionized crews to transport fuel refined on Oahu to Maui, Kauai and Hawaii island. If forced by a new law to hire additional labor, which HB 714 would practicably do, it would create logistical challenges and extra expense.
And it’s not just Par. Other energy companies, including Hawaiian Electric, Hawaii Gas, Aloha Petroleum and Island Energy Services all charter tugs and barges that would be subject to these new requirements. Also negatively impacted would be nonenergy companies such as Hawaiian Cement, American Marine Corporation and Aloha Marine Lines, all of whom oppose HB 714.
The state Public Utilities Commission also weighed in, echoing that this bill could force regulated shippers to retain additional services via a separate union labor contract above and beyond their current union labor force — resulting in increased costs that ultimately, would be passed on to customers.
One such quantification of pocketbook impact came from Hawaii’s consumer advocate: In consultation with Hawaiian Electric, he found that one “direct impact” of this bill could increase the monthly cost of electricity for those on Molokai by about $3.92 per month, by 50 cents for Hawaii island and by 26 cents for Maui. It’ll all add up, too quickly, to weigh on family budgets.
As Gov. Josh Green underscored in January’s State of the State address: “Our cost of living is the highest in the country at nearly twice the national average. In Hawaii we should not teeter on the brink of poverty in order to provide for our ohana.”
Unfortunately, nearly half of Hawaii’s housesholds — 44% — are already struggling to make ends meet. Legislators who back HB 714 could well push many struggling families over the brink, into poverty.
