Voice of Stephanie Salazar

The state of Hawaii and its four counties reached a contract agreement with the Hawaii Government Employees Association on Wednesday.

Governor Neil Abercrombie says that over the next two years, the agreement will save the state about $65 million for fiscal year 2012 and $59 million for fiscal year 2013.

The new deal calls for an equal contribution for public workers’ health benefits between public employees and the State and county governments.

HGEA employees will also take a 5 percent reduction in base pay, without furlough days or layoffs.

The agreement ends the two-day-a-month furloughs in the current contract that resulted in a 10 percent decrease in base pay and shut down of services for the public. Also under the current contract, the State and counties provide 60 percent of health benefits for public employees.

The agreement will require a ratification vote by HGEA members.

In a media release, the governor issued his statements on the agreement:

“Since the beginning of our administration, we have talked about shared sacrifice as the pathway to changing Hawai’i,” Governor Abercrombie said. “Today, the Hawai’i Government Employees Association stepped forward to do their part by making a sacrifice to help all people of Hawai’i. In these worst of fiscal times, a new era of teamwork and hope has begun.”

The agreement ends the two-day-a-month furloughs in the current contract that resulted in a 10 percent decrease in base pay and shut down of services for the public. Also under the current contract, the State and counties provide 60 percent of health benefits for public employees.

“We have reached an agreement that puts an end to Furlough Fridays and provides our citizens with the services that they expect,” Governor Abercrombie said. “The provisions we agreed to will save millions of taxpayer dollars and help maintain vital services to help us emerge from these difficult economic times. The state’s largest public sector union and the State of Hawai’i are uniting to put the people of Hawai’i first.”

The agreement will require a ratification vote by HGEA members.

“We approached bargaining differently,” Governor Abercrombie said. “We put the state’s challenges in front of us and worked collaboratively to come up with a solution that recognizes the value of public employees and serves the public good.”

This is the first public labor union agreement with the State and counties this year. Contracts for the United Public Workers, Hawai’i State Teachers Association, State of Hawai’i Police Officers Union and Hawai’i Fire Fighters Association are under discussion.

“Public employees are our neighbors. They are family members and taxpayers,” Governor Abercrombie said. “Though we are facing difficult times, Hawai’i can pull through this fiscal crisis if we all do our part and work together.”