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More Hawaii hotel workers settle.

Hawaii hotel workers settle Negotiators for the Hawaii Hotel Council and the Longshoremen's and Warehousemen's Union signed a new 5 -year agreement (retroactive to June 1, 1990) covering 5,700 hotel and restaurant employees working at eight "neighbor island" hotels located off Oahu in Hawaii. The contract increases wages a total of 41 percent over the term and continues the existing eight health care plans.

Major terms of the pact include a 7-percent wage increase in the first year, with 5 percent retroactive to June 1, 1990 and 2 percent effective December 1, 1990. In the second and third contract years, wages will increase 4 percent at the beginning of the year and 3 percent 6 months later. In the fourth and fifth years, the increases will be 3 percent in the beginning of the year and 4 percent 6 months later. In addition, retroactive to June 1, 1990 for employees who receive lower hourly pay rates because they are customarily tipped for their services, vacation pay increases to 1.25 times their normal rate (previously, normal rate) and on June 1, 1993, it will increase to 1.5 times their normal rate.

The eight medical plans at the individual hotels were continued with no changes in benefits and remained employer-financed, but with a cap on increased employer costs. The cap on costs the employers will absorb was increased to 12 percent (previously, 8 percent) annually. The Hawaii Medical Association (which provides medical care under the plans) agreed to average costs over all eight plans and guaranteed that increases will not exceed 36 percent for the first 3 years of the contract. The fourth and fifth year costs are not guaranteed. If costs rise more than 12 percent annually, payment of the additional costs will be negotiated by the union and the council.

Other terms retroactive to June 1, 1990 include a $2,500 increase (to $7,000) in life insurance coverage; the addition of one personal paid holiday, bringing the number of paid holidays to 11; and a fifth week (previously, four) of vacation for employees with 25 years of service or more.

Previously, 7,500 Oahu workers represented by the Hotel Employees and Restaurant Employees had settled with the Council. (See Monthly Labor Review, June 1990, pp. 69-70.)
COPYRIGHT 1990 U.S. Bureau of Labor Statistics
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Title Annotation:Developments in industrial relations; Hawaii Hotel Council-International Longshoremen's and Warehousemen's Union
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Date:Sep 1, 1990
Words:380
Previous Article:UAW contract keeps plant open.
Next Article:J.I. Case Co. settlement.
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