In what all sides described as progress, public-sector labor unions yesterday offered to take a 5 percent pay cut to help close the state's budget deficit, far less than what Gov. Linda Lingle has wanted but a sign that state workers are willing to sacrifice.
--Honolulu Advertiser
Hawaii Unions offered a 5% cut in pay in labor talks yesterday Governor Linda Lingle attended saying afterward the state would consider the unions' proposals. The 5% cut is a big plummet from the three furlough days a month (equal to about 13% cut) Lingle proposed last month. Although the budget deficit is still quite large, this is the first step toward closing the gap.
However, one of the Unions' other proposals of taking money from the Hurrican relief fund and temporarily increasing the general excise tax. This is not a good solution because a) El Nino is this year and b) this could cripple the already fragile private sector. Honolulu Mayor Mufi Hannemann says the Governor has "broken the stalemate," but that means someone is going to lose.
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Hawaii Unions offered a 5% cut in pay in labor talks yesterday Governor Linda Lingle attended saying afterward the state would consider the unions' proposals. The 5% cut is a big plummet from the three furlough days a month (equal to about 13% cut) Lingle proposed last month. Although the budget deficit is still quite large, this is the first step toward closing the gap.
However, one of the Unions' other proposals of taking money from the Hurrican relief fund and temporarily increasing the general excise tax. This is not a good solution because a) El Nino is this year and b) this could cripple the already fragile private sector. Honolulu Mayor Mufi Hannemann says the Governor has "broken the stalemate," but that means someone is going to lose.
Full Article...
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