Unionized workers at Hawaiian Telcom, the state’s largest telephone company, are taking a strike authorization vote just one week before Hawaii hosts the Asia-Pacific Economic Cooperation meeting of world leaders.
Officials from IBEW Local 1357 are recommending union members vote against a proposed labor agreement and authorize a strike. The ballots will be counted and the results announced on Monday.
The vote comes just a week before the APEC summit begins on Nov. 7. The weeklong conference is expected to bring about 20,000 people to Honolulu and will culminate Nov. 12-13 when President Barack Obama hosts the leaders of the other 20 APEC nations, including China, Russia and Japan.
Hawaiian Telcom said it has plans in place to ensure that service is not interrupted during the APEC summit.
"Our contingency plans for a possible strike considered the special needs and focus required during the period leading up to and during APEC conference," said Scott Simon, Hawaiian Telcom executive director of corporate communications.
CONTRACT OFFER
Hawaiian Telcom said the company’s three-year contract offer includes:
» 1 percent wage increases each year and a $500 ratification bonus each year.
» Union employees are currently provided a pension and matching 401(k) of 82 cents for each dollar the employee contributes up to 6 percent of base salary. The 401(k) match rises to a dollar-for-dollar up to 10 percent of base salary while freezing pension plan benefits at existing values.
» Union employees currently pay nothing toward full health care coverage for themselves and dependents. The company’s offer would require employees to contribute 10 percent to health care premiums.
» Employees currently may take up to 26 weeks of fully paid sick leave each year. The company’s offer provides up to eight weeks of fully paid sick leave annually, plus adds company-paid long-term disability and long-term care insurance.
Source: Hawaiian Telcom
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"Our plans provide for essential functions normally performed by the company’s union-represented employees to be performed by reassigned management employees and nonunion employees, along with outside contractors in key technical areas," Simon said. "For security reasons, we cannot disclose our plans relative to APEC in any greater detail, but we have planned for this contingency and are prepared for this important event."
About 700 of Hawaiian Telcom’s 1,300 employees belong to IBEW Local 1357.
Hawaiian Telcom workers were scheduled to work at the Hawai’i Convention Center and other venues during the APEC meeting, union officials said. The convention center will serve as the media hub, with working space for many of the 2,000 journalists expected to cover the event.
The strike authorization vote was prompted by the union’s objections to a new contract proposed by the company.
Union leaders urged members to vote against the contract because of its numerous "take-aways," including reductions in overtime and sick leave, freezing of the traditional pension plan and increases in medical costs, said Scot Long, business manager for IBEW local 1357.
"The membership grew even more frustrated when the union shared its multiple offers of cost savings to the company of over $5 million a year, yet the company still balked at the union’s recommendations," Long said in note to members.
Simon said the company has been "negotiating in good faith" with the union.
"The company has made a last, best and final offer that balances all parties’ needs with the realities of competition in the communications business and a challenging economy," Simon said.
"Hawaiian Telcom’s offer demonstrates a commitment to ensuring that our employees continue to receive competitive pay and very favorable benefits," he said.
A vote against the contract doesn’t necessarily mean the union will strike. Results of the balloting will be sent to the IBEW’s District 9 office in California before a decision is made on how to proceed, said Long.
The unionized workers include field technicians, line workers and call center representatives. Their original contract expired Aug. 12, but the two sides agreed to a series of one-week extensions as contract talks continued. The union began making preparations for a strike authorization vote Monday after the last contract extension expired.
