The Hawaii Government Employees Association has been watching contract negotiations between the Lingle administration and the Hawaii State Teachers Association for insight into how it might influence talks with the HGEA and other public-sector unions.

Public-school teachers will vote today on a contract that calls for 17 furlough days a year for 10-month teachers and 21 furlough days a year for year-round teachers. The furloughs are equivalent to a 7.9 percent pay cut.

Gov. Linda Lingle had initially sought 36 furlough days a year — or about a 14 percent pay cut — from unions to help close the state's budget deficit. But the governor has said that her original plan is no longer an issue in negotiations and that the state is now proposing something in the range of 24 furlough days a year.

"We have been waiting to see what would happen with HSTA," said Jodi Chai, the HGEA's communications officer.

Lingle told reporters last week that a settlement with teachers could place more urgency on the other unions.

The Lingle administration is in binding arbitration with the HGEA and the United Public Workers' public safety unit. The University of Hawai'i, on behalf of the state, has made a contract offer that includes a 5 percent pay cut to faculty in the University of Hawai'i Professional Assembly. An authorization vote by the union is scheduled for early October.

"I think HSTA is important to get finished and ask the teachers to go vote," Lingle said. "Once they vote, I think the urgency will be greater for the other unions, once we find out what the teachers think about what again is a difficult offer, but a fair offer."

Asked in an e-mail whether the potential HSTA deal would influence talks with other unions, J.N. Musto, the executive director of the University of Hawai'i Professional Assembly, responded flatly: "No."

Teachers and university professors are in different positions from state workers in the HGEA and UPW. Because Lingle did not have the authority to pursue furloughs outside of contract talks at the state Department of Education and the university, which are governed by independent boards, the governor imposed 14 percent spending restrictions on the department and UH.

Any labor savings from new contracts for teachers and professors would go toward meeting the spending restrictions. The proposed settlement with teachers does not seek layoffs for licensed, tenured teachers. The contract offer for professors does not call for layoffs this fiscal year.

LAYOFFS ORDERED

After Lingle's furlough plans for other state workers were blocked in court as unconstitutional by unions, the governor ordered more than 1,100 layoffs of workers represented by the HGEA and UPW and has warned of a second round of job cuts.

Lingle said the layoffs are necessary, along with spending restrictions on state departments, to close a deficit estimated at $884 million through June 2011. The governor said the layoffs will go forward in November even if deals are reached with the unions.

"We think what we've been offering is very fair but these layoffs will go forward because even with the labor savings from furloughs, it will not be enough to close the deficit," the governor said. "Remember this is just the last remaining piece. We have already cut over $2 billion from the state budget without touching our labor costs. We need to make some progress right now in the labor area. I wish we didn't have to do this. I wish the layoffs weren't necessary but they are."

State Senate President Colleen Hanabusa, D-21st (Nanakuli, Makaha), a labor attorney, correctly predicted that the settlement with teachers would likely come out to about an 8 percent pay cut. Other lawmakers, who will have to plug the labor settlements into the state's budget next session, have said they believe the outcome with other unions could be around half of the 14 percent pay cut the governor originally wanted to impose through furloughs.

If the state and the HGEA and UPW do not reach agreements and wait for binding arbitration rulings in December, many lawmakers believe that arbitrators could also split the difference.

"I think it's understandable for everyone to look at the preceding settlements when they make subsequent settlements," state Senate Majority Leader Gary Hooser, D-7th (Kaua'i, Ni'ihau), said of the potential HSTA agreement. "What's fair for the HGEA, what's fair for UPW, what's fair for others, that has to be decided between them and the governor."