Hawaii Agrees To New HGEA Labor Contract

HGEA

UPDATED 4/7/11 6:27 p.m.

Hawaii's largest and most influential union has agreed to a 5 percent salary cut with the state of Hawaii and its four counties.

The agreement, announced jointly by the Hawaii Government Employees Association and Gov. Neil Abercrombie, will likely spur settlement with other public-sector union contracts and help budget deliberations between the governor and the Hawaii Legislature.

The state faces a $1.3 billion deficit over the next two fiscal years and Abercrombie had based his budget plan in part on winning a 5 percent pay cut from public unions.

The state says the agreement will save the state about $124 million over the next two fiscal years.

Details of the two-year contract, which begins July 1, include the following:

• A 5 percent reduction in base pay for public employees.¹

• An equal contribution — 50-50 — for public workers' health benefits between public employees and the state and county governments.

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