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Home My WebLink AboutCOM 0921.001 1996-1998 ,r wN' William G. Davis Stephen K. Yamashiro Managing Director Mayor Henry Cho W .**.~i Deputy Managing Director (9 _ 1 1 25 Aupuni Street, Room 215 • Hilo, Hawaii 96720-4252 • (808) 9(f 821,1 • Fax (808) 9616558 KONA: 75-5706 Kuakini Highway, Suite 103 • Kallua-Kona, Hawaii 96740 (808) 329-5226 • Fax(808)326-5663 16 July 1998 Honorable James Arakaki and Members Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Dear Chair Arakaki and Members: Pursuant to Section 89-10(b), Hawaii Revised Statutes, I am submitting to you the cost items contained in the contract between Government Employers and the United Public Workers, AFSCME, Local 646, which has been ordered to be in effect by the Hawaii Labor Relations Board. As discussed below, I am recommending that you disapprove the cost items. A summary of these cost items is attached as Exhibit "A". The Recapitulation of Costs of the UPW and HGEA Settlements is titled as Fact Sheet and is attached as Exhibit "B.. Prior to the Legislature's action, slashing the County share of the transient accommodations tax, (and thereby greatly diminishing the ability of this County to pay), I took the position that I did not oppose the cost items proposed by the Chief Negotiator for the State and UPW Director Rodrigues. Even then, however, I opposed entering into a new contract without reform of certain work rules relating to changing conditions of employment and sick leave reporting. Although UPW deems such issues to be "non-cost" items, the failure to address them costs this County and all the other jurisdictions a great deal of money. Furthermore, since that time, the Legislature has refused to approve previously agreed upon contracts with other bargaining units, including those with HGEA units which you have already approved. The Attorney General, in a prior written opinion, has ruled that such inaction by the Legislature constitutes a rejection, and we have been told that she is holding to that position. Thus, the question of equal treatment toward the various units has been raised. Asa) Na. • O _A. Honorable James Ar, iki and Members 16 July 1998 Page 2 For these reasons, I am recommending that you take action to reject this cost package, so that these matters can be returned to the parties for further bargaining, as provided for by law. Sincerely, STEPHENUK. Mayor SKY/RW:1900Lbre Attachment County of Hawaii Bargaining Unit 1- Cost of Settlement Fiscal Year 1998.99 assume prepaid legal premium is taxable Cost of proposed settlement to County of Hawaii in fiscal year 1998-99: Lump Sum Salary Supplement (IMS) effective 7/U98 $ 1,009.922 10.46% across-the-board (ATB) increase on 711/98 1,131,331 Increase in night differential pay effective 7/1/98 20.045 New legal plan contnbutions, $7 per month effective 7/1/98 37.044 Total cost subject to fringe benefits 2,198.342 Certain fringe benefits (20.18%)' 443,625 Increase in Health Fund contributions, $7 per month effective 7/1/98 37,044 Settlement costa to be paid during fiscal year 1998.9 2,679,911 Estimated cost of other fringe benefits: Employer's contribution to ERS (1337% of total increased cost subject to fringe benefits)** 293,918 Vacation, sick leave and holidays (21% of increased cost subject to fringe benefits) 461,652 Total increased costs $ 3,434,581 Effect on base pay: Base pay at 4/30/98 S 10,815.780 10.46% across-the-board (ATB) increase on 7/1/98 1,131,331 Base pay at 4MM S 11,947,111 Annual effect on recurring costs: 10.46% across4be-board (ATB) increase on 7/1/98 $ 1,131.331 Increase in night differential pay effective 7/1/98 20,045 Increase in Health Fund contributions, $7 per month effective 7/1/98 (fn 37.044 New legal plan contributions. $7 per month effective 7/IM 37.044 Total increase in direct costs 1.225,464 Certain fringe benefits (20.18%)* 443,625 Total estimated increase to rearting costs $ 1.669.089 *Fringe benefits include estimates for overtime, premium pay, hazard pay standby, kasposary, aassignment. compensatory time, workers' compensation, and unemployment benefits. "Actuarially determined contribution no for classes A and C per FRS annual actuarial vahrmon dated 4/3497 (mast recent available). However, changes made by the most recent legislative unman will change this figure, but the new rake am not available yet. To additimu, the ammatt of the County's contriUdon for FY" is already established and will not clmge became of this payroll increase. PAGE ONE OF EXHIBIT-._._.a'_. County of Hawaii Bargaining Unit 61 • Cast of Settlement Fiscal Year 1998-9 assume prepaid legal premium is taxaWe Cost of proposed settlement to County of Hawaii in fiscal year 1998-99: Lump Sum Salary Supplement (LSSS) effective 7/iRg $ 19,600 10.46% across-the-board (ATB) increase on 7/1/98 15208 Increase in night differential pay effective 7/1/98 6 New Legal plan contributions, S7 per mach effective 7/1/98 388 Total cost subject to fringe benefits 35,402 Certain fringe benefits (20.18%)• 7,144 Increase in Health Fund contributions, $7 per month effective 7/1/98 388 Settlement casts to be paid during fiscal year 1998-9 43,134 Estimated cost of other fringe benefits: Employers contribution to ERS (13.37% of total increased cost subject to fringe benefits)** 4,733 Vacation, sick leave and holidays (21% of increased cost subject to fringe benefits) 7,434 Total increased costs S 53.301 Effect on base pay: Base pay at 6/30,98 $ 145,692 10.46% across-the-board (ATB) increase on 7/1/98 15,208 Base pay at 6/30/99 $ 160,900 Annual effect an recurring costs: 10.46% across-the-board (ATB) increase on 7/1/98 $ 15,208 Increase in night differential pay effective 7/1198 6 Increase in Health Fund contributions, $7 per month effective 7/1/98 (NT) 588 New legal plan contributions. $7 per month effective WIM 588 Total increase in direct cosh 16,390 Certain fringe benefits (20.18%)• 7,144 Total estimated increase in recurring casts $ 23 534 'Fringe benefits include estimates for overtime, preminmr pay, hazard pay. standby. temporary assignment. canpensatay time, workers' compensation, and unemployment benefits. ..Actuarially determined contribution rate for classes A and C per FRS annual actuarial valuation dated 6/30,97 (mat recent available). However, changes made by the most recent legislative was= will change this figure, but the new rates are not available yes. In addition. the amend of the County's contribution for FY" is already established and will mat change be== of this payroll increase. END OF EXHIBTT._ Fact Sheet Recapitulation of Costs of UPW and HGEA Settlements If approved, all of the below costs would be paid FY99. These settlements cover the time period through 6/30/99. UPW settlement costs:' 1~;.. BU01 $ 2,679,011 $ 1,131,331 BU61 (excluded) 43,134 15,208 $2,722,1 45 $ 1,146,539 HGEA settlement costs:' SU02 146,855 $ 91,228 BU03 1,079,574 663,453 BU04 105,229 59,761 BU13 484,464 378,956 BU63 (excluded from BU03) 126,244 81,109 BU73 (excluded from BU13) 21,024 15,209 BU84 (excluded from BU04) 4,569 2,330 $ 1,967,959 $ 1,292,046 Total settlement costs: $ 4,690,104 $ 2,438,585 Includes certain fringe benefits. Does not include ERS contributions or vacation/sick leav&bolidays. Increase to base pay as a result of these settlements. Does not include $74,088 in annual additional payments for medical and legal plans for UPW members.