Governor says no salary increase for faculty

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On October 31 UHPA and UH engaged in negotiations on a successor contract. The Governor presented his “apparent” opening offer of a 0% salary increase the first year of the new contract, a 0% increase in the second year, and an EUTF flat rate that will not increase with rising premium costs by the health insurance carriers.This is a significant change from the current practice of the employers’ contribution being established through a % of the total premium cost.

The Governor’s proposal negatively impacts all faculty by diminishing your buying power for at least a two year time period. It devalues the work of faculty members and is a break from the recent past where Governors, both Republican and Democrat, gave wage increases to faculty and other public employees.

The UHPA bargaining team expressed their concerns regarding the failure to support faculty members and the probable consequence of faculty leaving the University and the difficulty in recruiting quality employees. The State is not without appropriate resources to increase the compensation of faculty members.  It is a willful decision by the Governor to deny wage and benefits increases.

The Governor’s representative indicated they had not fully determined how to balance funds and faculty members needed to be patient. UHPA informed the Governors’ representative that they are doing damage to the reputation of the University as a desirable place to work.

The next negotiations session is December 1.

How the Governor’s EUTF offer may affect you

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The True Impact of the Governor’s Offer

State law does not allow UHPA or any bargaining unit to negotiate health plan benefits or health plan offerings.  The plan benefits and offerings are determined by the Hawaii Employer-Union Health Benefits Trust Fund (EUTF), which includes 5 representatives from the employer, and 5 representatives from labor, one of which represents the retirees.  UHPA and all bargaining units can only negotiate the amount of health care premiums paid by the employer.   

The Governor’s opening offer of a 0% salary increase for the first year, a 0% increase for the second year, and an EUTF flat rate that will not increase with increasing healthcare costs has dire implications for our faculty members.  The Governor’s representative was unable to answer any questions regarding the impact of the proposal.

The employer currently pays 60% of the health care premiums costs for the plan offerings under the EUTF, you pay 40% of the health care premiums.  The Governor’s offer is changing  from a percentage to a fixed dollar amount at the level it is today, which means that any health care increase will pass directly on to you.   

The economy remains strong, but with Inflation/CPI projections of up to 3% in 2017, this offer will have a negative impact on your purchasing power.  Healthcare inflationary trends, although lower than in the past, are still slightly above 5%, with prescription drug costs running closer to 10%.  The projected CPI with rising healthcare costs, combined with no increase for your EUTF healthcare premiums, compound the impact of no pay increase.

To illustrate the impact of the Governor’s offer, we have provided some examples below which take into account an increased CPI of 3% and an increase of 5% in EUTF healthcare premiums.

Example #1

Chris is a R3 nine month faculty member at the minimum salary of $64,896, with family coverage under HMSA’s 80/20 Medical Plan, with vision, and dental coverage.

2016

  • Salary – $64,896
  • Annual Employee EUTF Premium Contribution – $7,892.16

2017

  • Salary – $64,896
  • Annual Employee EUTF Premium Contribution – $8,818.49 (increase of $926.33)
  • CPI Impact – $1,946.88

In one year, Chris’ salary will be decreasing by $2,873.21 or a decrease of 4.4%, erasing the 4% pay increase received in 2016.  

Example #2

Jamie is a rank 4 faculty member at the minimum salary, with two party coverage under HMSA’s 90/10 Medical Plan, with vision, and dental coverage.  

2016

  • Salary – $75,720
  • Annual EUTF Premium Contribution – $8,990.16

2017

  • Salary – $75,720
  • Annual EUTF Premium Contribution – $9,850.75 (increase of $946.99)
  • CPI Impact – $2,271.60

In one year, Jamie’s salary will be decreasing by $3,218.59, or 4.2%, erasing the 4% pay increase received in 2016.  

Members saved thousands on their mortgages

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We’re happy to report that for the last quarter, UHPA members processed 4 loans (one of which was a first-time buyer) and saved an average of $1,333 on each of their mortgages.  That brings the total amount of savings for UHPA members to $138,000 on this program.   It has been reported that interest rates may be going up soon, your mortgage payment may never be as low as it could be right now.

Learn more about the UHPA special rate with HomeStreet Bank

 

2017 House Committee Chairs and Vice Chairs Announced

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UHPA has published the most recent 2017 House Committee Chairs and Vice Chair assignments within our Legislative Action center.

Show House Committee Assignments now

 

2017 HOUSE LEADERSHIP ANNOUNCED

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Speaker of the House, Joseph Souki, announces House Leadership for the 2017 Legislative Session

 

Speaker:                     Joseph Souki; Kahakuloa, Waihe‘e, Waiehu, Pu‘uohala, Wailuku, Waikapū

Vice Speaker:             John Mizuno; Kalihi Valley, Kamehameha Heights, portion of Lower Kalihi

Majority Leader:         Scott Saiki; McCully, Kāheka, Kaka‘ako, Downtown

Majority Floor
Leader:                        Cindy Evans; North Kona, North Kohala, South Kohala

Majority Whip:            Ken Ito; Kāne‘ohe, Maunawili, Olomana

Majority Policy
Leader:                        Marcus Oshiro; Wahiawā, Whitmore Village

Assistant Majority
Leader:                        Roy Takumi; Pearl City, Waimalu, Pacific Palisades

Assist. Maj. Ldr:         Chris Lee; Kailua, Waimānalo

Assist. Maj. Ldr:         Dee Morikawa; Ni‘ihau, Lehua, Kōloa, Waimea

Speaker Emeritus:    Calvin Say; St. Louis Heights Pālolo, Maunalani Heights, Wilhelmina Rise, Kaimuki

2017 SENATE LEADERSHIP ANNOUNCED

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Senate President Ron Kouchi, announces Senate Leadership for the 2017 Legislative Session

 

President:                     Ron Kouchi; Kaua‘i, Ni‘ihau

Vice President:             Michelle Kidani; Mililani Town, portion of Waipi‘o Gentry, Waikele, Village Park, Royal Kunia

Majority Floor
Leader:                          Will Espero; ‘Ewa Beach, Ocean Pointe, ‘Ewa by Gentry, Iroquois Point, portion of ‘Ewa Villages

Majority Leader:           Kalani English; Hāna, East and Upcountry Maui, Moloka‘i, Lāna‘i, Kaho‘olawe

Majority Caucus
Leader:                           Brickwood Galuteria; Waikīkī, Ala Moana, Kaka‘ako, McCully, Mō‘ili‘ili

Majority Whip:               Donovan Dela Cruz; Mililani Mauka, Waipi‘o Acres, Wheeler, Wahiawā, Whitmore Village, portion of Poamoho

Commerce, Consumer
Protection and Health:  Roz Baker; South and West Mau

Ways and Means:          Jill Tokuda; Kāne‘ohe, Kāne‘ohe MCAB, Kailua, He‘eia, ‘Āhuimanu

Judiciary and Labor:    Gil Keith-Agaran; Wailuku, Waihe‘e, Kahului