Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 531 entitled:

begs leave to report as follows:

The purpose of this measure is to require adjustments to compensation and benefit packages for excluded civil service employees that would be equal to those granted to employees covered by collective bargaining.

The Hawaii Government Employees Association, Managerial and Confidential Employees Chapter submitted testimony in support of this measure. The Department of Human Resources Development submitted testimony in opposition to this measure.

Your Committee finds that Act 253, Session Laws of Hawaii 2000, amended the law as it relates to salary increases and other cost adjustments for excluded civil service employees to allow for variable adjustments based upon performance. Accordingly, such adjustments are permitted to be lower than adjustments for those covered under a collective bargaining agreement, a practice which was previously disallowed.

However, your Committee determines that the majority of excluded employees are career civil servants who have competed for their positions in the same manner as other public employees. Furthermore, these excluded employees have spent their entire careers gaining the invaluable knowledge and skills required to efficiently and effectively run the programs that provide critical services to our community. Despite changes in the administration, they have successfully risen through the ranks and continue to perform their managerial duties.

Therefore, your Committee believes that it is necessary to adequately compensate these excluded employees, in the interest of fairness and equity, at a level which is at least equal to their counterparts who are covered by collective bargaining.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 531, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.