Collective bargaining settlements will have a major impact on the financial plans of the Administration and the Legislature. In testimony offered to the Joint Committees on Ways and Means and Finance in January 2004, the Administration, via the Department of Budget and Finance, indicated in their financial plan that the state could not afford any collective bargaining increases.

A number of unions are currently in negotiations with the Administration or are awaiting arbitration decisions:

• The Hawaii Government Employees Association (HGEA) is awaiting an arbitration decision that is due in late March;
• The University of Hawaii Professional Assembly (UHPA) is currently in negotiations with the Administration and was offered a settlement of 1% in fiscal year 2004 and 3% in fiscal year 2005;
• The Hawaii State Teachers Association (HSTA) is currently in negotiations with the Administration; and
• The United Public Workers Unit 1 (UPW 1) can reopen negotiations on wages if there is an HGEA settlement or award.

In light of the collective bargaining increases offered recently by the Administration, and the limited time available due to the Constitutional demands of the Legislative timetable, the Committee on Finance will be briefed by the Department of Budget and Finance on plans to fund the collective bargaining offers made by the Administration.

________________________________________

Rep. Dwight Y. Takamine