Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 1302 entitled:

begs leave to report as follows:

The purpose of this measure is to fund all collective bargaining cost items in the agreement negotiated with the exclusive bargaining representative of collective bargaining unit 10, institutional, health, and correctional workers.

In addition, this measure funds the salary increases and other cost adjustments authorized by chapter 89C, Hawaii Revised Statutes, for institutional, health, and correctional workers who are excluded from collective bargaining.

Testimony in support of this measure was submitted by the Judiciary, the Office of Collective Bargaining, the Hawaii Government Employees Association, Managerial and Confidential Employees Chapter, and the United Public Workers, AFSCME, Local 646, AFL-CIO.

Your Committee finds that a two-year arbitrated settlement for Unit 10 has been awarded, covering the fiscal biennium 2003-2005. Your Committee further finds that the Governor and the Legislature are committed to addressing retention and morale issues associated with Unit 10 through increased compensation provided for in the arbitrated settlement. The arbitrated settlement applies retroactively to July 1, 2003; therefore, your Committee determines that an emergency appropriation is necessary to ensure that adequate funds are available to compensate the employees of Unit 10 for the entire fiscal biennium of 2003-2005.

Accordingly, your Committee has amended the measure as follows:

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 S.B. No. 1302, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1302, S.D. 1, and be referred to the Committee on Ways and Means.