Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 1919 entitled:

begs leave to report as follows:

The purpose of this bill is to require that proposed adjustments to compensation and benefit packages for excluded civil service employees be at least equivalent to adjustments provided within the employer's jurisdiction.

The Managerial and Confidential Employees Chapter of the Hawaii Government Employees Association and numerous excluded employees from the County of Kauai testified in support of this measure. The Department of Human Resources Development and Department of Human Resources of the City and County of Honolulu testified in opposition to this measure.

Your Committee finds that the majority of employees in the Excluded Managerial Compensation Plan are career civil servants who have gained invaluable knowledge and skills, have risen through the ranks, and now serve as managers who keep government programs running, despite changes in the Administration. Treating these individuals less favorably than their collectively bargained counterparts, at times even offering these individuals less pay than their subordinates, is patently unfair. To maintain parity in pay and employee morale, it is vital that government grant managerial employees benefits "at least equal to" their collectively bargained counterparts.

Your Committee notes that H.B. No. 531 which passed the Legislature last session was identical to this bill. Unfortunately, H.B. No. 531 was vetoed by the Governor who stated that the bill was poor public policy and contrary to the underlying rationale for creating excluded positions that are not subject to collective bargaining.

Your Committee respectfully disagrees with the Governor and believes that this bill furthers the important public policies of attracting and retaining technically competent and loyal personnel.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1919 and recommends that it pass Second Reading and be referred to the Committee on Finance.