Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 180 entitled:

begs leave to report as follows:

The purpose of this measure is to require adjustment to compensation and benefit packages for excluded civil service employees to be at least equal to those provided under collective bargaining agreements within the employer's jurisdiction.

Testimony in support of this measure was submitted by the Hawaii Government Employees Association Managerial and Confidential Employees Chapter. Testimony in opposition to this measure was submitted by the Department of Human Resources Development and the Department of Human Resources for the City and County of Honolulu.

Your Committee finds that under Act 253, Session Laws of Hawaii 2000, variable adjustments based upon performance were authorized for excluded civil service employees. However, these adjustments are permitted to be based on merit and may be lower for those covered under a collective bargaining agreement, a practice that was previously disallowed. Your Committee further finds that a majority of the employees that are excluded from collective bargaining are career public servants who have competed for their positions in the same manner as other civil service employees. In fact, many of these employees have spent their entire careers gaining invaluable knowledge and the necessary skills required to efficiently and effectively run the state programs that provide critical services to our community. Additionally, irrespective of changes in the administration, these employees have managed to successfully rise through the ranks and continue to dutifully perform their managerial duties.

Therefore, your Committee determines that, in the interest of fairness and equity, it is necessary to adequately compensate these excluded employees 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. 180, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.