Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 729 entitled:

begs leave to report as follows:

The purpose of this measure is to make the act of an employer who permanently replaces an employee involved in a labor dispute punishable by a civil fine.

The measure would not be applicable to employees who voluntarily tender a resignation.

Testimony in support of the measure was received from the Hawaii State AFL-CIO, Hawaii Government Employees Association, Hawaii Nurses' Association, United Public Workers, and ILWU Local 142. Testimony in opposition was received from the Attorney General, AT&T, and Hawaiian Tug & Barge Corporation.

Your Committee finds that the measure enables any person to initiate a civil action against an employer who permanently replaces an employee involved in a labor dispute. Unlawful actions covered under the measure include advertising or soliciting for permanent replacement employees.

Your Committee also finds that if the employer is found in violation, the employer would be liable to each person who accepts employment as a permanent replacement employee for actual damages and a penalty of $1,000.

Your Committee believes that the measure adequately protects the rights of employees engaged in a lawful dispute with their employer.

Your Committee has amended this measure by exempting employees who are under the jurisdiction of the National Labor Relations Act (NLRA), based on testimony of the Attorney General that the NLRA preempts state law.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 729, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 729, S.D. 1.