LIHU‘E — Hawaiian Telcom’s motto of “always on” may be a little off, as more than half of the company’s roughly 1,300 workers began a two-day strike yesterday. The walk-out is scheduled to end today at 8 p.m. International Brotherhood
LIHU‘E — Hawaiian Telcom’s motto of “always on” may be a little off, as more than half of the company’s roughly 1,300 workers began a two-day strike yesterday. The walk-out is scheduled to end today at 8 p.m.
International Brotherhood of Electrical Workers Local Union 1357, representing approximately 700 Hawaiian Telcom employees, announced the strike Thursday after failed attempts to reach a new contract agreement with the telecommunications company. Its old contract expired 16 days ago.
“The employees have given and given and given in the last several years, whereas the senior management team, all they have done is take,” IBEW representative Harold Diaz said. “They have taken and taken and taken, and made multi-millionaires of themselves.”
Union workers are fighting to keep their 100 percent health insurance coverage — the company offered a 90-percent co-pay — among other issues.
The union has also criticized CEO Eric Yeaman of poor administration, leading an underfunded pension plan and wasting millions of dollars in compensation and severance pay.
Four vice presidents have been fired during the last three years, according to the union’s website.
“I cannot agree with that,” said Hawaiian Telcom spokesperson Scott Simon, adding that since 2010 various senior management have left the company on their own after several years of good contributions to the company.
Simon also defended Yeaman’s handling of the pension plan, saying the company has made all required contributions under Yeaman’s leadership and has ensured that all retirees receive their pay.
The union workers’ strike comes during what Hawaiian Telcom investor relations director Brian Tanner called one of the state’s “proudest moments” as host of the Asia-Pacific Economic Cooperation.
“It is unfortunate that the union has begun its work stoppage at this time, when they could have waited and continued working through APEC without losing anything,” he said.
On Kaua‘i, about 20 to 25 of the company’s approximately 30 workers are union members, according to Diaz.
Diaz said union workers have lost enough over the last few years and will lose even more, if the company would approve what the union would agree to.
“The issues are plenty, but if you have to boil it down, we are not asking for anything,” Diaz said. “In fact, we are willing to give the company over $5 million in benefits back every year, and the company wants more from us.”
He said Hawaiian Telcom posted a profit last year and has paid $6.7 million to Yeaman. It has also paid multi-million-dolar contracts for other senior management.
“They haven’t given up a single thing,” Diaz said. “We’ve given enough already.”
Over the last six years, union workers have given over $240 million of their pension money. At the same time, despite regular raises, wages have been stagnant in terms of inflation levels, according to Diaz.
Simon said the claim on Yeaman’s salary is not “entirely true,” since it contains stock investments that will pay off over several years and his salary is set by a committee. He also said the union’s offer demanded that several executives return some of their pay and that employee-performance bonuses be cut, among other things that, in the end, would not save in costs.
Several union employees on Kaua‘i were rallying by the company’s headquarters in Lihu‘e.
Diaz said he will be on Kaua‘i today to talk to the employees. A rally is also scheduled for today in Honolulu from 4 to 6 p.m.
Two-day strike
“Having anticipated this possibility, Hawaiian Telcom has activated readiness plans to minimize service disruptions during the work stoppage, but cautions that delays can be expected,” Simon said. “While we hope to return to normal operations soon, we sincerely apologize to our customers for any temporary inconvenience due to the union’s action and ask for their patience and understanding during this period.”
Diaz said the union workers went on a two-day strike to bring awareness to the issues, but it’s keeping it short in order to not penalize customers.
“We are hoping this will motivate the company to get back to the bargaining table with the union,” said Diaz, adding that from the beginning Hawaiian Telcom has not bargained in good faith and has hid information necessary to allow educated decisions.
Simon said there was no hiding of information. The problem is that company did not have information on insurance premiums for 2012 up until last week, when it provided the union with such information as soon as it was released.
Diaz also lashed at the company, saying that about two months ago, Hawaiian Telcom considered shutting down technical support on Kaua‘i and commute staff from O‘ahu in case of emergencies or outages.
“It was the union who fought and told them that was ridiculous, that would be a disservice to the people of Kaua‘i, do not have the technical expertise on the island in case of outages and emergencies,” said Diaz, adding that the company “could care less about customer service,” and has no knowledge of telecommunications and the sophistication of the business.
Tanner said in the release that wait times when calling the company may be longer, repair work will be prioritized to address health and safety, and other field work will be prioritized based on available resources.
“Some delays should be expected,” he said.
Hawaiian Telcom offer
“The company made a good-faith offer for a new agreement that fairly balances all parties’ needs with the benefits provided by competitors and other employers, and the realities of competition in the communications business and a challenging economy,” Simon said in the release. “Our last, best and final offer demonstrates a commitment to ensuring that our employees continue to receive competitive pay and very favorable benefits.”
Under Hawaiian Telcom’s offer, employees would contribute 10 percent to healthcare premiums for employee and dependent coverage.
Employees have not been paying for these benefits, according to the company’s release.
The company’s offer provides up to eight weeks fully-paid sick leave annually, plus adds company-paid long-term disability and long-term care insurance. Up until now, employees have been able to take up to six months fully paid sick leave each year.
Union employees have been provided a pension and matching 401(k) plan of $0.82 per dollar up to 6 percent of base salary.
Hawaiian Telcom’s offer provides a 401(k) plan with a dollar-for-dollar match, up to 10 percent of base salary, while freezing pension plan benefits at existing values.
The company also offered 1 percent compounded wage increases and an annual $500 ratification bonus for three years.
• Léo Azambuja, staff writer, can be reached at 245-3681 (ext. 252) or lazambuja@ thegardenisland.com.
