Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 849, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to clarify what an arbitration panel may consider when determining salary and wage adjustments in collective bargaining agreements.

Specifically, the bill provides that, in giving due consideration to the interests and welfare of the public, an arbitration panel may not reallocate funds from existing programs or current levels of service previously authorized by the Legislature to fund new or enhanced cost items.

Your Committee recognizes that public employees' right to reasonable salary increases secured through collective bargaining requires thoughtful consideration of changes in laws relating to collective bargaining. The authority of the Legislature in dealing with economic issues must be considered as part of the process. Your Committee believes this bill heeds both positions to produce a fair result to protect interests of the general public, as well as public employees.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 849, S.D. 1, and recommends that it pass Third Reading.